The Government raised UAH 566 billion from the placement of domestic government bonds in 2023

During 2023, the Government of Ukraine actively raised funds from the placement of domestic government bonds (OVDPs), reaching an impressive amount of UAH 566 billion in equivalent, including UAH 401.79 billion, USD 3.69 billion and EUR 735.8 million.

The press service of the National Bank of Ukraine informs that UAH 216.03 billion, USD 3.34 billion, and EUR 588.0 million were allocated to repay the obligations under these bonds. In the domestic debt market, the government in 2023 exceeded its borrowings by UAH 204.112.8 billion in equivalent, compared to repayments on domestic government bonds.

During 2023, from the beginning of the great war to December 31, UAH 554.178 billion, USD 5.62 billion, and EUR 1.71 billion were raised at primary auctions. Proactive measures taken by the Cabinet of Ministers and the National Bank of Ukraine have helped to revitalize the domestic debt market, providing various opportunities for banks and non-residents.

It is noted that the regulators expanded the list of bonds for which mandatory reserves can be used and assisted banks in conducting operations. An important step was the ability of non-residents to transfer funds abroad received from paying interest on government bonds. Measures introduced in 2023 also include requirements for a minimum holding period for government bonds before receiving interest.

In December 2023, hryvnia domestic government bonds showed a maximum yield of 18.60% per annum, while USD bonds yielded 4.66% and EUR bonds yielded 3.20%. It is worth noting that as of January 1, the largest volume of military government bonds was concentrated in primary dealer banks and in the portfolio of Ukrainian citizens and businesses.

In general, the dynamics of the domestic debt market remains an important aspect of Ukraine's economic stability, and the increase in the volume of military government bonds held by individuals and legal entities demonstrates the confidence of citizens in domestic investment instruments.