Investing in government bonds with borrowed funds - opportunities, risks, and real benefits

Domestic government bonds (OVDP) remain one of the most popular investment instruments in Ukraine. At the same time, the scheme for purchasing OVDP with borrowed funds has recently been actively discussed in the public space. How legal is it, does it really allow one to earn money, and what risks does it entail, UNN asked financial experts Andriy Shevchyshyn and Taras Kozak.

What are OVDPs and why do they attract investors

OVDPs are government securities that are currently considered one of the most liquid and accessible investment instruments for individuals.

This is the most popular and liquid investment instrument in Ukraine. And today it is the instrument with the highest return compared to alternatives on the domestic market

According to him, the yield of hryvnia OVDPs is currently about 16-16.5% per annum, and this income is not taxed. This is their key difference from bank deposits.

For comparison, a deposit with a nominal rate of 15% after taxes actually yields slightly more than 11% of net income, which only partially compensates for inflation.

Taras Kozak, in turn, also highlights the attractive characteristics of OVDPs as an investment instrument. Among them:

• higher yield compared to deposits;
• absence of income taxation;
• ability to sell securities before maturity;
• full state guarantee for the entire investment amount.

Liquidity and accessibility of the instrument

OVDPs are highly liquid, which allows an investor to exit the investment at any time, except weekends.

You can exit bonds at any time. You can always sell them, and for amounts up to 100 thousand hryvnias, this will not be a problem 

Bonds can be purchased through banks or digital services, including the "Diia" application. At the same time, the investor needs to undergo identification and have an electronic signature.

In fact, all major brokers allow you to open an account online. This takes 10-15 minutes. After that, you can buy OVDPs without physical presence

A separate feature is the entry threshold: the minimum cost of one bond is about UAH 1000 plus accumulated coupon income.

Scheme for purchasing OVDPs with borrowed funds: can you really earn money on it? 

Recently, the idea of investing in OVDPs using borrowed funds, particularly with the use of a grace period on credit cards, has been circulating on social media.

The scheme is legal because it is within the legal framework. Indeed, it can work

The essence of the approach is that the investor takes a loan with a grace period (up to 40-45 days), buys OVDPs, and tries to get income without paying interest to the bank for using the funds.

In fact, according to the expert, in such a model, an individual acts as a financial intermediary.

If a citizen can borrow funds at a low cost, and by buying OVDPs actually lends to the state, then the individual acts as a bank

Taras Kozak also confirms: the option of buying OVDPs with borrowed funds exists and is legal, but it has its risks and limitations. 

Some banks allow buying OVDPs using the grace period on a credit card, when no interest is charged. This is approximately up to 60 days. Such a scheme is currently possible mainly through "Diia", where payment is made by card. It is important to understand here that the decision depends not on the broker, but on the bank that issued the card. It is the bank that determines whether interest will be charged for the use of credit funds

Despite this, Kozak does not consider such an approach to be a classic investment.

An investment is the placement of one's own free funds. In this case, credit resources are used. This is a different logic

He emphasizes that the potential benefit depends on the terms of the specific bank and the duration of the grace period. If the bank starts charging interest, the profitability of the investment may disappear.

You need to check the bank's terms. You can make a test transaction for a small amount and see if interest is charged

OVDPs with bank money: main risks and costs

Despite its formal legality, such a scheme has a number of limitations and risks. First of all, it concerns additional costs.

You face problems related to volume and additional operating costs. Commissions can negate all income

Among such expenses:

• commissions for money transfers;
• fees for buying and selling bonds;
• possible additional bank charges.

In addition, the investor must strictly adhere to the loan repayment terms. Violation of the grace period automatically leads to the accrual of high interest.

The individual takes on all the risks, just like the bank, that at some point they will have to return all of this and maintain financial discipline

Bonds on credit: when the scheme can work

According to Shevchyshyn, using borrowed funds to buy OVDPs makes sense only under certain conditions:

• low cost of credit or a real grace period;
• minimal commission costs;
• strict adherence to deadlines;
• sufficient volume of the operation.

Only when, taking into account all expenses, a person still has income, then this is a "working scheme"

At the same time, for small amounts, such a strategy is ineffective.

For small amounts, it makes no sense to do this

Taras Kozak, in turn, emphasized that each investor independently decides on the advisability of such a way of investing funds. 

But the basic approach is to invest your own funds, not borrowed ones

Recall

In 2025, Ukraine raised over UAH 569 billion from the sale and exchange of OVDPs at auctions, and in total, since the beginning of martial law, this figure has reached almost UAH 2.03 trillion. The portfolio of war bonds owned by individuals and legal entities as of January 1, 2026, reached the equivalent of UAH 181.6 billion.