Ukraine's finance ministry reduces placement of gov't bonds by 75%

Ukraine's Finance Ministry says it has cut by 75% the placement of government domestic loan bonds for the first time over the last three weeks.

The ministry borrowed UAH 2.51 billion (US$92.2 million) in equivalent at an auction held on April 18. Some UAH 1.66 billion (US$61 million) was raised through the sale of bonds in the national currency, while another US$31 million was received via placing foreign currency bonds.

Offer to investors

At the auction, investors were offered hryvnia bonds with a maturity of six months and two years and U.S. dollar bonds with a maturity of eight months.

Read alsoUkraine returns to bond market – mediaThe ministry managed to raise UAH 999.52 million (US$36.7 million) at 7.82% per annum via the placement of six months-maturity bonds and UAH 663.77 million (U$$24.4 million) at 10.14% through the placement of two years-maturity bonds. The ministry borrowed US$31 million at 3.39% per annum via the placement of currency-denominated government loan bonds.

Non-residents' investment: background

• Non-residents' investment in Ukraine's government domestic loan bonds in 2019 increased by 18 times, or UAH 109 billion (US$4 billion) to UAH 115.8 billion (US$4.3 billion).
• In the first week of July 2020, it shrank by 0.6%, or UAH 586.65 million (US$21.5 million), to UAH 99.02 billion (US$3.6 billion).
• As of July 10, 2020, it decreased by 3.4%, or UAH 3.33 billion (US$122.3 million), to UAH 95.69 billion (US$3.5 billion).