Ukrainians and foreign investors have invested more than a trillion hryvnias in Ukrainian government bonds (OVDPs) since the start of the full-scale invasion. This amount is equal to about 200 days of defense funding or 15% of Ukraine's GDP in 2023. Military bonds have been the second largest source of financing for the state budget since March 2022.

Since February 24, 2022, as of May 20, 2024, Oschadbank has purchased domestic government bonds for its own portfolio and on behalf of clients in the total amount of UAH 154.23 billion in equivalent, of which UAH 26.6 billion – since the beginning of 2024, UAH 65.29 billion – in 2023 and UAH 62.34 billion – in 2022.

Investments in domestic government bonds have been and remain one of the important mechanisms for stabilizing the financial system and preventing a liquidity crisis in times of war. Due to the convenience of purchasing bonds, market yields that exceed inflationary expectations, and a 100% guarantee of repayment from the state, government bonds are currently the most attractive instrument on the market.

 

The interest of Ukrainians in investing in government bonds has increased significantly since the beginning of the full-scale invasion. In particular, the volume of such investments by individuals increased by 2.5 times to UAH 62 billion during this period, and by legal entities doubled to UAH 162.9 billion.

 

The percentage of refinancing of market domestic government bonds as of March 31, 2024 was 138%. At the same time, the refinancing of hryvnia-denominated domestic government bonds amounted to 207%. These indicators indicate that Ukraine is attracting more money through hryvnia-denominated domestic government bonds than it has to pay under its existing obligations to investors in government bonds.

Oshchad is a primary dealer in the Ukrainian government securities market and has the opportunity to purchase military bonds directly at the Ministry of Finance auctions held every Tuesday.

Under martial law, the purchase of military bonds through Oschadbank is carried out under a simplified procedure in terms of financial monitoring and confirmation of the sources of funds.

 Oschad has canceled most of the fees for transactions with military bonds for the period of martial law. Therefore, customers can invest with minimal costs. There are no taxes and fees when redeeming bonds. 

Press service of Oschadbank