The issuance of domestic government bonds since the beginning of the year has brought UAH 500 billion to the Ukrainian budget

In the first 10 months of 2024, the issue of domestic government bonds (OVDPs) attracted UAH 500 billion to the state budget of Ukraine. This was reported by the Ministry of Finance.

In particular, from January to October 2024, the sale of domestic government bonds at auctions raised UAH 497.8 billion in equivalent. Since the beginning of martial law, this amount has exceeded UAH 1.3 trillion.

Photo/kmu.gov.ua

In October, the Ministry of Finance raised a record amount of UAH 106.9 billion (UAH 83.4 billion in hryvnia and USD 569 million) from the issue of government bonds. Out of this amount, military bonds amounted to UAH 82.8 billion.

As of 1 November, the total amount of domestic government bonds in circulation exceeded UAH 1.76 trillion. The largest share is held by commercial banks (46.7%) and the National Bank of Ukraine (38.5%). The share of legal entities and individuals is 8.4% and 4.0%, respectively, non-residents – 1.3%, insurance companies – 1.1%, and territorial communities – 0.04%.

Photo/kmu.gov.ua

In October, the weighted average yield on hryvnia domestic government bonds was 15.6%, while the yield on dollar-denominated bonds was 4.62%.

The refinancing level for the period January-October 2024 in all currencies reached 158%, which is higher compared to the same period in 2023, when this figure was 145%.

The funds raised are used to finance state needs under martial law, in particular, security and defence needs.