Thanks to bond purchases, Ukrainians financed 200 days of war
22 May 2024 11:12
Since the beginning of the full-scale Russian invasion, Ukrainians have bought UAH 1 trillion worth of domestic government bonds. This was reported by the Ministry of Finance of Ukraine, "Komersant Ukrainian" reports
These funds played a very important role for Ukraine’s defence capability. According to the Minister of Finance, thanks to them, Ukraine financed 200 days of hostilities.
“Thanks to the funds raised from domestic government bonds, we were able to finance more than 200 days of our defence and protection, which is 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 budget after international aid,”
– said Minister of Finance of Ukraine Sergii Marchenko.
In total, domestic government bonds are currently in circulation for more than UAH 1.6 trillion, of which the share of commercial banks is 42.2%, the National Bank – 41.5%, legal entities – 10%, individuals – 3.8%, non-residents – 2.4%, and territorial communities – 0.1%.
Since 2016, the volume of investments in bonds by individuals has increased by about 600 times, and since 24 February 2022 – by more than 2.4 times. Legal entities have increased their investments in domestic government bonds 7-fold since 2016 and 2-fold since the start of the full-scale invasion.
Between January 2022 and March 2024, UAH 31.5 billion in coupon income was paid to Ukrainian individuals and legal entities (excluding banks), and UAH 19 billion to foreign ones, totalling UAH 50.5 billion.
22 May 2024 is the 819th day of the full-scale war with Russia. Thus, by purchasing bonds, Ukrainians have financed almost every fourth day of the war.
