Ukraine will allow foreigners to transfer bond income from April 2023

US 100 dollar, 50 euro, 20 pound and Ukrainian 500 hryvnia banknotes are seen in this illustration taken in kyiv, Ukraine October 31, 2016. REUTERS/Valentyn Ogirenko/Illustration/Files

Join now for FREE unlimited access to Reuters.com

Register

KYIV, May 10 (Reuters) – Ukraine’s central bank will allow foreign investors in domestic bonds to transfer income earned from such bonds abroad after April 1 next year, the bank said.

Foreigners held 75.2 billion hryvnias ($2.55 billion) in bonds before Russia began its invasion on February 24.

But the wallet shrank after the central bank banned the purchase and transfer abroad of foreign currency except to pay for strategic or vital items such as weapons, fuel or medicine.

Join now for FREE unlimited access to Reuters.com

Register

“Implementation of this standard will increase non-resident interest in purchasing domestic government bonds, especially for funds received from scheduled repayments and income payments,” the bank said in a statement. Monday press release.

Ukraine’s finance ministry has struggled to borrow funds on the local market to finance the budget deficit, which widened amid rising spending needs and shrinking tax revenues during what Moscow calls it a “special military operation”.

($1 = 29.5000 hryvnias)

Join now for FREE unlimited access to Reuters.com

Register

Reporting and writing by Natalia Zinets; Editing by Clarence Fernandez

Our standards: The Thomson Reuters Trust Principles.

Comments are closed.