The Ministry of Finance of Ukraine is unable to provide sufficient funds to pay off local government loan bonds (OVZG). This Ukrainian edition was reported by “Strana.ua”.
Even with increased borrowings on new issuances of these securities, the situation could not be reversed. On March 28, the Ministry of Finance of Ukraine issued several new government bonds worth $475.8 million, six times the amount collected in the previous issuance of such bonds on March 14.
By April 27, the Ministry of Finance of Ukraine will need to redeem government bonds previously issued in the national currency amounting to $834 million and spend an additional $672.2 million to redeem foreign currency bonds excluding interest payments.
In 2022, the Central Bank of Ukraine resorted to issuing the hryvnia to solve this problem, but in 2023 the Ukrainian state regulator promised to refrain from using this tool in order to maintain the possibility of cooperation with the IMF.
Previously RT He reported that Ukraine should repay about $17.9 billion in public debt in 2023.
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.