NBU transfers UAH 24 bln of 2020 profit to state budget

The National Bank of Ukraine (NBU) generated UAH 40.73
bln of profit for distribution in 2020, of which it decided to direct UAH 24.43
bln as a contribution to the state budget, the NBU reported on April 20, adding
that the entire tranche has been already paid to the state budget.

The rest of the distributable profit, UAH 16.30 bln,
will be directed to increase the NBU’s reserves which, by law, should be equal
to 10% of the annual average financial liabilities of the entity.

The state receives almost UAH 2 bln more than the
National Bank expected last year, NBU deputy governor Kateryna Rozhkova
commented. Last year, the NBU planned to distribute to the state budget UAH
22.63 bln of its 2020 profit in 2021. At the same time, the law on the
2021 state budget stipulates that the NBU would contribute UAH 33.0 bln of its
profit to the government.

Alexander Paraschiy: This will
be the smallest NBU payment to the state budget in the last five years (in
2016-2019, the NBU paid UAH 43-69 bln), which will result in the budget’s
revenues under-performing by UAH 8.57 bln (or by 0.8%). The smaller than
budgeted payment is an expected event, taking into account that the NBU’s top
management stated many times its expected contribution. Interestingly, the
NBU’s payment to the budget will be smaller this year than the budget’s
payments to the NBU (over UAH 40 bln in interest and principal on state bonds).