The National Bank of Ukraine has adopted a decision to extend the loan repayment period for banks. The extension of the loan repayment period is envisaged by Resolution of the Board of the National Bank of Ukraine No. 551, dated September 4, 2014 “On changing the loan repayment period for banks” (hereinafter – Resolution No. 551) . The above-mentioned decision has been taken with a view to preventing a deterioration of bank liquidity conditions and ensuring that banks meet their obligations to depositors and creditors on time.

Commenting on Resolution No. 551, Director of General Department of Banking Supervision Alla Shulga noted that such a concession granted by the regulator to banks would not only enable banks to release immediately available funds and enhance banks' ability to meet their obligations on time and in full, but would also help avoid instability in the Ukrainian banking sector.

“Given the difficult economic situation in Ukraine and severe constraints in access to domestic and external market funding, the National Bank of Ukraine has extended the deadlines for repayment of the principal by banks on loans issued by the National Bank of Ukraine to support bank liquidity and on loans granted to maintain bank liquidity from September − November 2014 until December 10, 2014,” said Alla Shulga.