On 10 March 1995, Ukraine issued its first domestic government bonds (OVDP), marking the beginning of its government securities market. Today, the OVDP market celebrates its 30th anniversary.
As one of Ukraine’s largest and most systemically important banks, FUIB has been actively investing in domestic government bonds. As of 1 January 2025, FUIB ranks among the top five banks in terms of hryvnia-denominated OVDP holdings, with a portfolio of UAH 36 billion.
“Today, domestic banks are the largest investors in government bonds, and over the past three years, their hryvnia OVDP portfolios have grown by 77%. This reflects the banking sector’s confidence in Ukraine’s future and its commitment to supporting the country through these challenging times,”
Serhiy Chernenko, Chairman of FUIB’s Management Board
Over the past 30 years, more than UAH 3.3 trillion in OVDPs have been issued under market conditions. Since the start of the full-scale invasion, OVDPs have become the second-largest source of financing for Ukraine’s state budget, raising UAH 1.46 trillion since February 2022.
Government bonds serve as a vital investment tool that helps sustain the state budget and is accessible to individuals, businesses, and foreign investors. Interest income from OVDPs is exempt from personal income tax and military tax. These bonds enable the Ministry of Finance to secure funding for urgent expenditures.
During wartime, funds raised through OVDPs are primarily allocated to support the Armed Forces of Ukraine. Investors play a crucial role in providing the military with essential resources, including weapons, ammunition, equipment, food, and medical supplies.
Today, government bonds remain one of the state budget’s primary funding sources, alongside international aid and revenues from taxes and customs duties.
