30 years of the government bond market in Ukraine: Why is it important?

On 10 March 1995, Ukraine held its first auction for the placement of domestic government bonds. This was the beginning of a long journey that has transformed this instrument into one of the key mechanisms of budget financing over the past 30 years.

While at the beginning the government bond market was primarily serviced by commercial banks, today it is actively engaged by individuals and businesses. Since the beginning of the full-scale invasion, domestic government bonds have been the second largest source of financing for the state budget of Ukraine. Since February 2022, UAH 1.46 trillion has been raised through the issue of domestic government bonds.

During this time, investments by individuals increased more than 3 times to UAH 84 billion, and by legal entities more than 2 times to UAH 186 billion. This demonstrates a high level of trust in government securities and an understanding of their role in maintaining economic stability.

Today, it is much easier to buy government bonds than it was 30 years ago. Thanks to digital technologies, this process has become accessible to everyone – bonds can be purchased through licensed brokers, the Diia app, and banks. In addition, investors have an additional advantage: income from government bonds is not taxed. The NSSMC has also launched the website ‘Vnesok’ – a clear guide for novice investors.

Military bonds have become a real financial shield for the country. The proceeds from their placement are used to finance the army, purchase necessary equipment, medical care and social programmes.

Domestic government bonds have become not just an investment tool, but also a real way for every citizen to contribute to the victory and create the basis for economic recovery.

The NSSMC welcomes the cooperation with the Ministry of Finance in this area and hopes that we will continue to improve the implementation of this instrument.