Amounts of Issued Public Bonds Do not Devaluate Hryvnya
OREANDA-NEWS. August 21, 2009. The amounts of issued public bonds can not be the reason of devaluation of hryvnya. Acting Finance Minister Ihor Umanskyi announced during a briefing at the Cabinet of Ministers of Ukraine.
According to him, holding by the Finance Ministry of significant emission of the public bonds had not any influence on the monetary base.
Ihor Umanskyi clarified that the Ministry of Finance had issued public bonds to the tune of UAH 18.6 billion that is included into statutory fund of Naftogaz of Ukraine NJSC and hasn’t been monetized till now, being on accounts of the company in Oshchadbank. “These bonds haven’t been monetized, they do not contain any monetary aggregates capable of pressurizing the market,” he stressed.
Besides, according to Ihor Umanskyi, the Finance Ministry held emission of public bonds to the tune of UAH 9.5 along the program of capitalization of banks. “That is UAH 9.5 and 18.6 billion – on the one hand, is a significant amount, on the other – it is such amount that hasn’t influenced hryvnya proposition anyhow,” Ihor Umanskyi explained and added an impact could be felt “if such proposition was formed at the account of emission sources and buying or refinancing of these bonds by the National Bank”. According to him, the National Bank hasn’t held additional emission of money under the state securities recently. At this, he underlined that placement of public bonds at the state funds from the year’s start amounted over UAH 10 billion.
Ihor Umanskyi emphasized that an issue of gradual monetization of UAH 18.6 billion in public bonds is being only considered by the National Bank now. At this, the Finance Ministry suggested to the National Bank to elaborate a schedule of purposeful use of the funds, including payments for gas.
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