MOSCOW, April 16 (RIA Novosti) – Ukraine’s Ministry of Finance will issue two-year war bonds worth a total of 1.1 billion hryvnia, stated the Decision of the Cabinet of Ministers No. 100-101 dated April 1 and released only this week.
“This proposal is a call to the community to join forces, desires and intentions to participate in the solution of national problems and to provide financial assistance to Ukraine’s armed forces enhancing their combat readiness and strengthening the defense of the state,” announced the Ministry of Finance prior to the release of government securities.
The securities mentioned in the document are book-entry war bonds with a 7% coupon for a total of 1 billion hryvnia, and certificated treasury bonds with a face value of 100 million hryvnia. The yield on each security with a face value of 1,000 hryvnia will be paid every 6 months.
Ukraine has been in serious financial trouble since February. With extremely high arrears for Russian gas and a military that needs funding Kiev has struggled to make both ends meet.
Kiev cannot raise funds independently as it is in a stand-by agreement with IMF to receive rescue money. The only alternative left for the interim government is to appeal to patriotism and issue the so-called war bonds, with yields exempt from tax, should the government not default before the first payment is due.