The regulator has held two refinancing tenders recently.
Fourteen Ukrainian banks have received UAH 4.82 billion, or over US$176.2 million, in refinancing from the National Bank of Ukraine (NBU).
In particular, two refinancing tenders were held by the NBU on August 14, 2020, the regulator's press service reported on the website.
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One tender was held for a period of 84 days at the request of three banks in the amount of UAH 90.6 million (US$3.31 million) at an interest rate of 6% per annum; and the other covered a period of 1,820 days at the request of 11 banks for the amount of UAH 4.73 billion (US$172.9 million) at 6% per annum.
JSC Ukreximbank received the largest sum, UAH 2.89 billion (US$105.66 million), topping the list of the borrowers.
It is followed by:
The NBU announced in March 2020 that it was introducing long-term refinancing loans for banks.
The loans, which will mature in up to five years, represent an addition to existing standard short-term refinancing instruments. This measure is intended to meet several goals at once in order to safeguard the nation’s financial stability and stimulate economic growth.
First, the long-term refinancing mechanism will support the banks that make hryvnia loans, reinforcing the effect of the measures the NBU has taken in recent months: cuts to the key policy rate and the introduction of loose reserve ratios.
Second, the new instrument will provide an additional assurance that the banking system has sufficient liquidity. This will also be important for the uninterrupted conduct of client transactions as confidence among the financial market’s participants worsens over coronavirus fears.