Ukraine’s Government Borrows almost UAH 1,209 Billion through Auctions to Sell Domestic Government Debt Securities since Martial Law Was Imposed

According to the NBU Depository, in the first nine months of 2024, the government of Ukraine raised an equivalent of almost UAH 391 billion: UAH 280,516.6 million, USD 1,967.1 million, and EUR 754.9 million from offering domestic government debt securities through auctions and allocated UAH 143,270.9 million, USD 1,476.6 million, and EUR 918.3 million for redemption of domestic government debt securities.
In January–September 2024, the Ministry of Finance borrowed in the domestic debt market UAH 150,369.8 million more (in equivalent) than it spent to redeem domestic government debt securities, specifically UAH 45 170,1 million more in September (in equivalent).
The rollover of investments in domestic government debt securities (the ratio of the face value of securities sold at auctions to those redeemed in accordance with the terms of their issue) in January-September was 148% in all currencies at the current official exchange rate.
In total, from the onset of russia’s full-scale invasion of Ukraine through 30 September 2024, the government raised an equivalent of more than UAH 1,209 billion, in particular: UAH 834,692.3 million, USD 7,584.4 million, and EUR 2,468.0 million through primary auctions and allocated UAH 572,642.7 million, USD 7,612.3 million, and EUR 2,168.9 million to redeem domestic government debt securities.
The domestic debt market was revived thanks to the joint efforts of the government and the National Bank of Ukraine.
In particular, the NBU allowed the banks to use benchmark domestic government debt securities from the NBU’s list to cover a part of their required reserves and gradually expanded this list.
Furthermore, the NBU enabled the repatriation by nonresidents of interest payments received after 1 April 2023 on domestic government debt securities, provided they comply with a requirement that the investor shall have owned such domestic government debt securities for a certain minimum period that precedes the receipt of said interest.
For its part, the government is offering market-based interest rates on domestic government debt securities.
In September 2024, the maximum yield on domestic government debt securities offered at auctions was 16.90% per annum for hryvnia-denominated bonds, 4.66% per annum for U.S.
dollar-denominated bonds, and 3.25% per annum for euro-denominated ones.
The domestic debt market’s active operation is important for ensuring macrofinancial resilience.
On the one hand, macrofinancial resilience is a safeguard against monetary financing of the budget deficit.
On the other hand, it is an important instrument for improving the maturity structure of funds in the banking system and mitigating risks to the FX market and price stability.
Everyone can purchase war bonds now and strengthen the financial resilience of Ukraine.
Find below detailed statistics by NBU Depository on war bonds offered through auctions, as of 1 October 2024.
Primary dealers – banks – hold the largest portfolio of war bonds.
 
Ukrainians and domestic businesses hold the second-largest portfolio of war bonds.  As of 1 October, it comprised:
UAH 72,821.0 million or 34.6% of the total value of purchased domestic currency-denominated war bonds (UAH 68,779.7 million or 33.3% as of 1 September) USD 1,504.7 million or 53.1% of the total value of U.S.
dollar-denominated war bonds (USD 1,556.9 or 58.0% as of 1 September) EUR 143.0 million or 25.4% of the total value of euro-denominated war bonds (EUR 103.1 million or 21.7% as of 1 August). Overall, the portfolio of war bonds owned by individuals and legal persons is equivalent to UAH 141.4 billion, according to 1 October 2024 data, up from UAH 58.1 billion on 1 October 2023, an increase of over 2.4 times.
As of 1 October 2024, nonresidents held UAH 6,146.6 million, USD 24.8 million and EUR 0,1 million in war bonds.
In September 2024, the Ministry of Finance redeemed USD 350 million of U.S.
dollar war bonds.
Find out more about the military domestic government debt securities here. The table presents data at amortized face value.
For reference: On 22 March 2022, the NBU began to publish weekly statistics of the NBU Depository related to war bond transactions.
At the beginning of 2023, the NBU switched to the monthly publication of relevant releases as of the first day of the month.
Previous data are available by the tag war bonds.