October 2, 2022

Ukraine printing money to cover deficit

Now exactly where have we seen this particular before?

The National Financial institution of Ukraine (NBU) “ printed ” another 30 billion hryvnia ($814 million) during the past week, Ukrainian parliament MP Yaroslav Zheleznyak said on Wed, referring to the central bank’s purchase of local provides.

Over the past week (August 16-23), the NBU published another 30 billion hryvnia. The total amount of NBU funding through budget printing attained 285 billion hryvnias ($7. 7 billion) , ” Zheleznyak wrote on his Telegram channel.

The Ukrainian authorities had earlier revealed that the budget debt is currently about $5-7 billion a month. Since tax income and customs payments cannot help cover this space, the NBU is having to resort to ‘ printing’ money by purchasing government bonds to cover budget expenditures. Main bank financing of a deficit can increase inflation dangers.

According to Zheleznyak, the sale of domestic government bonds has been bringing “ very little ” to the budget.

Also, of the “ promised ” $5 billion of foreign help for August, Ukraine provides received only $1. four billion so far, including $350 million from Canada for that purchase of gas.

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