Investment boom: households invested UAH 100 billion in government bonds
15 August 2025 21:38
INFOGRAPHICS
Investments of Ukrainians in government bonds have reached a record 100 billion hryvnias. Over the past day alone, citizens’ investments have increased by more than UAH 0.5 billion, "Komersant Ukrainian" reports, citing the Ministry of Finance of Ukraine.
The national financial regulator, the NBU, also confirms that the volume of domestic government bonds held by individuals is growing rapidly in Ukraine. Between January 2022 and August 2025, this figure increased from UAH 25.1 billion to UAH 100.2 billion, more than four times.
The growth dynamics is as follows:
- January 2022 – UAH 25.1 billion
- January 2023 – UAH 30.2 billion
- January 2024 – UAH 52.2 billion
- January 2025 – UAH 78.5 billion
- August 2025 – UAH 100.2 billion
Thus, in the last six months alone, the volume of household investments in government bonds has increased by more than UAH 21 billion.
The Ministry of Finance notes that the popularity of domestic government bonds among Ukrainians is growing due to attractive yields, no income taxation, and ease of purchase through banks and mobile applications. In addition, the purchase of government bonds is seen as a contribution to the country’s financial stability during the war.
The relevant ministry explains that attracting citizens’ funds to finance the budget through government bonds is a win-win strategy: investors receive a guaranteed profit, and the state receives a stable source of funding.
According to experts, if the current dynamics continue, the volume of domestic government bonds held by individuals may exceed UAH 110 billion by the end of 2025.
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The volume of domestic government bonds on the market reached UAH 1.88 trillion: who are the largest holders
As of August 14, 2025, the total volume of domestic government bonds (OVDPs) in circulation in Ukraine is UAH 1.876 trillion, according to the Ministry of Finance and the NBU.
Banks remain the leaders in terms of investments, with UAH 882 billion of domestic government bonds on their balance sheets. The National Bank of Ukraine is in second place with a portfolio of UAH 671.02 billion. The third position is occupied by legal entities holding UAH 184.04 billion of government bonds.
Individuals have significantly increased their presence on the market in recent years.
Other categories of holders were distributed as follows:
- non-residents – UAH 19.48 billion
- territorial communities – UAH 0.47 billion
- insurance companies – UAH 19.46 billion.
The vast majority of bonds are denominated in hryvnia, which is in line with the government’s strategy to reduce currency risks. The share of domestic government bonds denominated in euros and US dollars is much smaller, but remains an important instrument for attracting foreign currency resources.
Financial analysts note that the growing interest in domestic government bonds among households and businesses indicates that confidence in the domestic debt market is strengthening.
Expanding the investor base is a positive signal for public finances. It allows to attract stable domestic resources without excessive dependence on external creditors.
The Ministry of Finance expects that interest in domestic government bonds will continue due to attractive rates, preferential taxation and the convenience of purchasing through banks and online applications. Experts estimate that by the end of 2025, the market volume may exceed UAH 1.95 trillion.
What are domestic government bonds and why is interest and trust in them growing?
Domestic government bonds (DGBs) are securities issued by the state to raise funds for the budget. They are guaranteed by the government of Ukraine, which makes the risk of non-repayment minimal. In 2025, the yields on hryvnia domestic government bonds often exceed bank deposit rates, reaching an average of 14-18% per annum. In addition, individuals are exempt from paying income tax and military duty, which increases real yields. The government bonds are available in three currencies – hryvnia, US dollars, and euros – and their maturity varies from three months to six years.
How to choose an intermediary and prepare for the purchase
An individual can purchase domestic government bonds only through an authorized intermediary, such as a bank or a licensed investment company. In 2025, among the most active players in this market are PrivatBank, Oschadbank, Ukrgasbank, FUIB, Raiffeisen Bank, Sense Bank, as well as brokers ICU, Dragon Capital, UNIVER, and Freedom Finance. When choosing an intermediary, you should pay attention to the amount of commissions for the purchase and storage of securities, as well as the minimum deposit amount, which usually starts at UAH 50 thousand, although some brokers work with smaller volumes.
Accounts and documents required
To invest in domestic government bonds, you need to open an investment account in securities and a custodial account for their storage. These services are usually provided by the bank or broker. To open an account, you need a passport or ID card, an identification code, and a signed agreement with an intermediary.
Choosing an issue and conducting a transaction
The Ministry of Finance of Ukraine holds weekly auctions for the placement of new domestic government bonds. Information about the available series can be found on the official website of the Ministry of Finance, at intermediaries or on financial portals. Investors choose the issue by maturity, currency, and yield. For example, in August 2025, hryvnia one-year bonds will yield about 15.5% per annum, dollar one-and-a-half-year bonds – 4.5%, and euro two-year bonds – 3%.
After making their choice, investors transfer funds to their investment account in the respective currency and place a purchase order. The securities are credited to the custody account, and interest payments are made according to the schedule – semi-annually or at maturity, depending on the terms of the particular issue.
Yield and taxation
The key advantage of domestic government bonds for individuals is the absence of interest taxation. For example, if an investor buys UAH 100 thousand worth of hryvnia bonds at 15.5% per annum, he or she will receive UAH 115.5 thousand in a year without any tax deductions.
Advantages and limitations of domestic government bonds
Bonds are attractive because of their reliability, fixed income, and lack of taxes. They are available in different currencies, which helps protect capital from devaluation. However, investors need a brokerage account, and the minimum investment amount is often higher than for bank deposits. Yields on foreign currency issues are usually lower than on hryvnia issues.
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