Marchenko: The Ministry of Finance does not plan to raise interest rates on OVHZ
The Ministry of Finance does not plan to raise interest rates on domestic government bonds and indicates that there are grounds for lowering them. Finance Minister Sergey Marchenko said this in an interview with Forbes, Biznes.Censor writes.
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What will happen to OVHZ rates
“Recently, the National Bank improved its inflation forecasts. This indicates the growth of real profitability for all instruments of the Ministry of Finance. A stable macro situation, an increase in international reserves and improved inflation expectations give us reason to believe that yields on OVHZ have reached their peak, and to forecast a gradual decrease in rates on OVHZ, in the absence of significant shocks,” said Marchenko.
He emphasized that for the Ministry of Finance, lowering rates is one of the main tasks, but it will depend on the market situation.
Read: 1-4% currency bond rates: can an individual purchase them on the primary market
“Will there be a decrease? We will watch. It depends on how the market will react. If we lose the ability to borrow when rates drop significantly, I think it could be a bigger problem,” the head of the Ministry of Finance noted.
According to the depository of the National Bank, the maximum yield of government bonds placed in April was 19.60% per annum in hryvnias, and 4.85% per annum in US dollars.
At the same time, payments for OVHZ in April exceeded borrowing on the domestic market by 6.25 billion hryvnias (equivalent). At the same time, during January-April, the corresponding Ministry of Finance borrowed UAH 61.03 billion more on the domestic market than it paid for OVHZ.
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Source: Ministry of Finance