Finance Ministry ready to listen to market, but there are no opportunities for rapid growth of rates – minister

KYIV. Nov 15 (Interfax-Ukraine) – The Ministry of Finance of Ukraine is ready to consider any options for enhancing the attraction of funds in the domestic borrowing market, however, it is limited in its ability to increase the yield of government bonds due to the lack of necessary funds for their future servicing, Finance Minister Serhiy Marchenko said at a briefing in Kyiv on Monday.

"Regarding the rate, this is a discussion, it is determined by the nature of market relations and interaction with market participants. We are working on this, we understand that the cost of borrowing should shape the market and are ready to listen to the market," the minister said.

According to him, when the rate moves, the money supply in the market will be taken into account.

"At the moment, I do not see the possibility for a rapid increase in tax rates and budget revenues to direct them to servicing borrowings," Marchenko stressed.

He urged Ukrainians to buy domestic government bonds.

"Apart from taxes, this is perhaps the only source that helps us finance the army and will allow us to accelerate victory in this war," the minister stressed.

The minister also said that he was determined to improve the level of interaction with the National Bank, as "the only way to ensure macroeconomic stability."

As reported, the NBU raised the refinancing rate from 10% to 25% on June 3 in order to increase the attractiveness of the hryvnia, reduce pressure on the country’s international reserves and fight inflation, which reached 26.6% in annual terms in October.