Ukrainians have bought US$25 billion worth of bonds since start of full-scale war, financing over 200 days of defence

Ukrainian citizens and businesses, including banks, have purchased over UAH 1 trillion (roughly US$25 billion) worth of domestic government bonds on market terms since the start of the full-scale invasion.

Source: press service of Ukraine's Finance Ministry

Details: "Thanks to the funds raised from domestic government bonds, we could finance over 200 days of our defence and protection, equivalent to 15% of Ukraine's GDP in 2023. In general, investments in bonds have become the second largest source of financing for the state treasury after international aid," said Ukraine's Finance Minister Serhii Marchenko.

A total of more than UAH 1.6 trillion (roughly US$40 billion) worth of domestic government bonds are currently in circulation, including 42.2% held by commercial banks, 41.5% by Ukraine's National Bank, 10% by legal entities, 3.8% by individuals, 2.4% by non-residents and 0.1% by hromadas. [A hromada is an administrative unit designating a village, several villages, or a town, and their adjacent territories – ed.].

At the same time, individuals and businesses have significantly increased their interest in buying domestic government bonds. The volume of investments by individuals has increased by about 600 times since 2016, and by more than 2.4 times since 24 February 2022. Legal entities have increased their investments in domestic government bonds seven-fold since 2016 and two-fold since the start of the full-scale invasion.

A total of UAH 31.5 billion (roughly US$789 million) in coupon income was paid to Ukrainian individuals and legal entities (excluding banks) and UAH 19 billion (roughly US$476 million) to foreign ones between January 2022 and March 2024, making a total of UAH 50.5 billion (roughly US$1.22 billion).

Background: On 21 May, the Ministry of Finance raised over UAH 10.5 billion (roughly US$263 million) to the state treasury at an auction for the placement of domestic government bonds.

Support UP or become our patron!