Since the beginning of the full-scale war, Ukraine has placed bonds of domestic government loans in the amount of 1 trillion hryvnias. This was reported to the Ministry of Finance. In times of crisis for the economy, OVDPs became the second largest (after tranches from international partners) source of financing the budget deficit.
According to the calculations of the Ministry of Finance, 1 trillion hryvnias allowed Ukraine to finance 200 days of war.
Buying government bonds, i.e. “borrowing” money to the state at interest, today is not only a support for the budget, but also a profitable investment, since the interest earned by the owners of government bonds is quite high. It is more profitable than a deposit. In addition, such investments are less risky.
Since the beginning of the full-scale war, businesses began to buy OVDP twice as often, and demand from ordinary Ukrainians increased by 2.2 times.
“At the end of 2022, the OVDP market received a new impetus with the involvement of banks, remains liquid and now has a good rollover (the percentage of replacement of old issues with new ones) at the level of 162% for the first 4 months of 2024. Due to personal income tax benefits for individuals, this instrument allows you to get higher profitability for investors compared to bank deposits. Lowering the entry threshold (from 1 thousand hryvnias), expanding the network of banks – primary dealers and licensed brokers and, as a result, forming more competitive commissions, simplifying the purchase procedure (the purchase can be made, including through “Dia “) make the instrument of military bonds attractive to citizens”, – believes the head of the Committee of the Verkhovna Rada of Ukraine on Finance, Tax and Customs Policy Danilo Getmancev.
