The NBU called the amount that “hanged” in Ukraine due to the ban on foreigners withdrawing funds from OVHZ
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The amount of funds that can be repatriated by non-residents is UAH 800 million, or almost $20 million. That’s how much they received after April 1 as payment of interest income on domestic state loan bonds (OVGZ), Deputy Head of the National Bank of Ukraine Yury Geletiy reported.
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“The resource that can potentially be withdrawn from Ukraine is approximately $20 million. We are monitoring the situation and will, if necessary, calibrate our actions,” said Yury Geletiy.
He also emphasized that the priority for the National Bank and the Ministry of Finance is that the funds received by non-residents under OVHZ be directed to the primary market and used by the Ministry of Finance to finance the budget deficit.
“Our task is to preserve gold and currency reserves, on the one hand, and on the other hand, to help our state in this difficult time. And everyone, including non-residents, can help through the primary debt market,” the deputy head of the NBU emphasized.
A balanced decision
Yury Geletiy noted that the decision to allow non-residents to repatriate only interest income received after April 1 was considered. It received approval from the IMF and non-residents themselves.
“In the conditions when we made this decision, we understood that the potential amount that can be withdrawn in the absence of restrictions is about UAH 90 billion. This is a large enough volume for our gold and currency reserves. We must act proactively and minimize this risk,” Geletiy emphasized.
Read also: Foreigners continue to leave our OVHZ: who actively buys them now
Let’s remind
The National Bank decided to postpone the opportunity to repatriate the principal amount invested in domestic government bonds “until the significant reduction of security and macroeconomic risks.”
Foreign investors were allowed to take abroad only the money that they will receive from paying interest on OVGZ after April 1, 2023.
According to the National Bank’s estimates, the amount of interest payments on OVHZ to non-resident investors in the period from April 1 to the end of 2023 will amount to about $120 million (equivalent at the official rate of the NBU).
Source: Ministry of Finance
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