27 Jul 2022 16:19

NBU boosts volume of monetary financing of budget to UAH 240 bln, hoping to remain within UAH 400 bln through end of year

MOSCOW. July 27 (Interfax) - The National Bank of Ukraine (NBU) in July increased the volume of monetary financing of the state budget through direct redemption of domestic bonds from UAH 225 billion to UAH 240 billion UAH, First Deputy Governor of the NBU Kateryna Rozhkova said.

"We hope and have consistently been talking about not wanting to go beyond UAH 400 billion this year, we would like to stay within these planned issuance volumes," Ukrainian media cited Rozhkova as saying on Wednesday during a discussion titled "Will there be a new wave of bank failures?" organized by the CASE Ukraine analytical center.

According to Rozhkova, in order to keep monetary financing within established limits, the Finance Ministry needs to bring the rates on government bonds closer to the market and work more actively with banks, primarily state-owned lenders, as so far it has not managed to carry out a rollover of bonds, to establish a rhythmic external financing. She thinks it would also be worth considering an additional military levy, excluding the poor.

"Counting on the whole world to support us all the time? - I wouldn't count on it," she said.

The regulator likely purchased another UAH 15 billion in federal bonds on July 22, according to information on the NBU's website.