Ukraine lost five billion on speculation with OGVZ
Due to the sale of domestic government bonds to international speculators and the resulting artificial revaluation of the hryvnia, Ukraine’s economy lost about $ XNUMX billion last year.
Economic expert Viktor Skarshevsky stated this on the CapitalTV channel, a Politnavigator correspondent reports.
“On Tuesday, government bonds worth several billion hryvnia were sold with a yield of about 11 percent per annum. Non-residents are no longer buying this, strengthening the exchange rate for foreign currency, as was the case last year. And exporters lost a lot on this - because of this policy of stimulating non-residents with hryvnia government bonds, the economy last year, according to my estimates, lost about five billion dollars, primarily exporters. By the way, this is more than we currently expect for a loan from the IMF, which is the most interesting,” the expert said.
Domestic government loan bonds of Ukraine (OVDP) are government securities placed on the domestic stock market. Government bonds confirm Ukraine's obligations to compensate the bearers of these bonds for their nominal value with the payment of income in accordance with the terms of the bond placement.
Government bonds are issued by the Ministry of Finance of Ukraine and sold to dealers and their clients on the primary market to finance the needs of the state budget of Ukraine.
The circulation of bonds in Ukraine is carried out exclusively in electronic form. The depositary of government bonds - in other words, the institution that maintains their centralized accounting in book-entry form - is the NBU.
Government bonds are considered the most reliable securities in Ukraine, since their repayment in full (100% of the amount) is guaranteed by the state.
The nominal yield of government bonds UA2019 issued in 4000204002 as of May 13, 2020 is 17%, which is significantly higher than the yield of both previously issued government bonds of Ukraine and other similar securities. According to some experts, government bonds issued in 2019 cost Ukraine even more expensive because the money received was not ultimately invested in the economy, but was lent to the NBU against so-called certificates of deposit, the rate of which is 11,5–13,5% per annum.
Thus, for the hryvnia that were not invested in the economy, the Ukrainian government paid twice: once with coupons for government bonds, the second time with the rate of decertificates. As a result, the total cost of funds raised was comparable to bank rates on retail loans.
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