The National Bank has optimized the liquidity management tools of the banking system, in particular, overnight loans, direct repo transactions and refinancing loans for 90 days, provided through holding tenders, as it is said in the relevant regulator’s resolutions.
According to the message, these amendments will allow banks to satisfy their short-term needs in liquidity.
NBU reportedly provided the opportunity of using the rollover mechanism – the provision of loan to the bank for fulfilling the previously undertaken obligations.
“The rollover can be applied for repayment of refinancing loans and overnight loans, the collateral on which were the government bonds of Ukraine and NBU certificates of deposit”, the message says.
In addition, the list of securities, which the National Bank accepts as collateral on overnight and direct repo transactions, was extended.
“Until the present only sovereign bonds and NBU certificates of deposit were used as collateral on overnight loans as well as only sovereign bonds – on direct repo transactions. In the meantime, the bonds of international financial organizations could be pledged as collateral on refinancing loans. From now on, the bonds of international financial organizations are accepted on overnight loans and direct repo transactions”, NBU explained.
Also, the opportunity was provided to increase, decrease and replace collateral on refinancing loans.
