The NBU To Refinance Banks For Up To 3 Years.
19 June 2008
The National Bank of Ukraine (NBU) introduced a 3-year refinancing procedure for commercial banks. The loans will be secured by 30-day deposits, which banks agree to hold on the NBU’s accounts. The refinancing loans will be provided at the NBU’s discount rate (current 8.5%), while the interest rate on deposit accounts is set at 6.8% (80% of the NBU’s discount rate), meaning that banks will be able to draw loans at 1.7%. Concorde Capital: Ukrainian banks often lack medium and long-term funds to match their increasingly longer assets. The National Bank’s recent step towards longer refinancing should allow banks to decrease maturity gaps.
