Key Takeaways
- • The National Bank of Ukraine expanded its benchmark domestic government bonds list effective August 11, 2025, adding ISIN UA4000236418 while removing UA4000227193 due to scheduled redemption on April 6, 2025.
- • The updated benchmark bonds list now comprises 17 securities issues that banks are permitted to use to satisfy up to 60% of reserve requirements, designed to stimulate participation in Ministry of Finance auctions.
- • The new bond UA4000236418 was first placed by Ukraine's Ministry of Finance on July 15, 2025, and was formally added to the benchmark list through NBU Board Decision No. 253 (dated July 24, 2025, effective August 10, 2025).
- • The expansion aims to encourage bank activity in government debt auctions as a mechanism for financing the state budget without reliance on monetary financing from the central bank.
- • The complete updated benchmark bonds list includes 17 ISINs: UA4000227201, UA4000227490, UA4000228043, UA4000228381, UA4000228811, UA4000229116, UA4000232607, UA4000232615, UA4000232896, UA4000232912, UA4000233613, UA4000234140, UA4000234553, UA4000234934, UA4000235642, and newly added UA4000236418.
Summary
The National Bank of Ukraine implemented an update to its list of benchmark domestic government debt securities effective August 11, 2025, modifying which bonds banks may use to partially satisfy reserve requirements. The expansion removed one security (UA4000227193) whose scheduled redemption was completed on April 6, 2025, and added a newly issued bond (UA4000236418) first placed by the Ministry of Finance on July 15, 2025.
The benchmark bonds framework allows Ukrainian banks to cover up to 60% of their total required reserves using securities from the designated list. The NBU maintains this list in coordination with the Ministry of Finance to support market development and optimize liquidity management across the banking sector. The newly added ISIN UA4000236418 represents the most recent addition to a benchmark portfolio that now encompasses 17 distinct securities issues.
This regulatory adjustment reflects the NBU's strategy to stimulate bank participation in government bond auctions conducted by the Ministry of Finance. By expanding eligible securities in the benchmark list, the central bank aims to enhance demand for newly issued domestic government debt, thereby reducing reliance on monetary financing mechanisms and supporting fiscal sustainability objectives. The measure addresses structural funding requirements while maintaining banking sector flexibility in meeting regulatory capital and reserve obligations.
The formal authorization for this update was issued through NBU Board Decision No. 253, dated July 24, 2025, which amended NBU Board Decision No. 752 from November 23, 2017. The decision took effect on August 10, 2025, aligning with the commencement date of the expanded benchmark bonds list. The Ministry of Finance formally announced the updated list of eligible benchmark instruments available to market participants and authorized dealers participating in government debt operations.
The benchmark bonds framework allows Ukrainian banks to cover up to 60% of their total required reserves using securities from the designated list. The NBU maintains this list in coordination with the Ministry of Finance to support market development and optimize liquidity management across the banking sector. The newly added ISIN UA4000236418 represents the most recent addition to a benchmark portfolio that now encompasses 17 distinct securities issues.
This regulatory adjustment reflects the NBU's strategy to stimulate bank participation in government bond auctions conducted by the Ministry of Finance. By expanding eligible securities in the benchmark list, the central bank aims to enhance demand for newly issued domestic government debt, thereby reducing reliance on monetary financing mechanisms and supporting fiscal sustainability objectives. The measure addresses structural funding requirements while maintaining banking sector flexibility in meeting regulatory capital and reserve obligations.
The formal authorization for this update was issued through NBU Board Decision No. 253, dated July 24, 2025, which amended NBU Board Decision No. 752 from November 23, 2017. The decision took effect on August 10, 2025, aligning with the commencement date of the expanded benchmark bonds list. The Ministry of Finance formally announced the updated list of eligible benchmark instruments available to market participants and authorized dealers participating in government debt operations.
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