Ukraine central bank to transfer UAH 64.9 bln in dividends to state budget

The National Bank of Ukraine (NBU) will pay UAH 64.9
bln in dividends to the state budget from its 2018 earnings, the regulator
reported in its press release on Apr. 24, citing the decision by its council.

In 2018, the NBU’s distributable profit amounted to
UAH 68.5 bln (vs. UAH 45.9 bln in 2017). The profit consisted of interest
income, income from operations with financial assets and liabilities in foreign
currency and operations with securities. In particular, the net interest income
of the NBU amounted to UAH 34.9 bln (vs. 45.2 bln in 2017). The net income from
debt securities revaluation amounted to 6.7 bln (vs. 2.7 bln in 2017).

Evgeniya Akhtyrko: The
announced dividends of UAH 64.9 bln significantly exceeded the related budget
earmark of UAH 47.6 bln. The higher dividends reflect budget revenues this year
exceeding plans, which create a rainy day reserve that could prove valuable
given the expected slowdown in economic growth this year, as well as expected
fiscal underperformance in other proceeds.