• Українською
  • Serhii Marchenko: Ukraine counts on domestic investor
    Ministry of Finance of Ukraine, posted 10 July 2020 12:14

    Ukraine is counting on a domestic investor. We have an underestimated potential of the domestic market and domestic investment. The Ministry of Finance continues to work on building a competitive and transparent domestic government bonds market. And the issue of trust in the issuer is fundamental to success in both domestic and foreign capital markets.

    The Minister of Finance of Ukraine Serhii Marchenko stated in an interview with the Segodnya (Today – ed.) newspaper.

    "The coronavirus-inflicted crisis has proved that Ukraine possesses a sufficient domestic resource that needs to be used with maximum efficiency. There exists an interest in domestic government bonds from public and private banks. Due to this fact, we have managed to reduce the yields on government bonds from 12 to 7.5-8% in just one month. At that, the demand is sufficient to finance the budget," he stressed.

    The Minister noted that individuals have the opportunity to buy government bonds through banks. "Already now users of PrivatBank's mobile application have the opportunity to buy DGBs in one click. Other banks are also developing similar applications. We are working to make these tools more accessible," Serhii Marchenko said.

    According to him, the issue of trust is key to active involving people in long-term financial instruments.

    "Undoubtedly, it is a matter of time. People will realize a certain purpose and develop interest in such an investment. I think in the future we will be able to actively attract citizens' money in government bonds. Both citizens and the state will benefit as a result," the Minister stressed.

    He noted that given the level of income of citizens, this tool is currently available to a narrow range of investors. "But Ukraine wants to grow as a country and wants its citizens' incomes to grow. Therefore, we must think strategically. In the future, we will develop at a normal pace, and citizens will consider these tools as relevant for themselves. Moreover, Ukrainian banks are already launching online solutions that simplify investing procedures for individuals," Serhii Marchenko stressed.