By virtue of Resolution of the Council of the National Bank of Ukraine No 27 dated 11 September 2014 the Board of the National Bank of Ukraine was recommended to devote special attention to enhancing liquidity of the Deposit Guarantee Fund (the Fund) and, if required, take timely and adequate action to support its operations.

Considering recommendations of the Board of the National Bank of Ukraine and with the approval by the International Monetary Fund and the World Bank, in order to improve conditions for the Fund to apply for loans from the National Bank of Ukraine the Board of the National Bank of Ukraine has passed Resolution No 587, dated 18 September 2014, amending the Regulation on Financing the Deposit Guarantee Fund by the National Bank of Ukraine approved by Resolution of the Board of the National Bank of Ukraine No 95, dated 18.03.2013, in particular:

• stipulating that loans may be secured by Ukrainian government bonds in the amount of 100% of their balance value (vs 90% before the amendment);
• expanding the list of possible collateral for the Fund’s loans to include proprietary rights to future receipts to the Fund’s current account at the National Bank of Ukraine (including receipts of special duty) in the amount of 80% of collateral amount including loan interest;
• extending the maximum loan period to three years (vs one year before the amendment).

Relevant changes were also made in the Technical Procedure of Issuing Loans to the Deposit Guarantee Fund by the National Bank of Ukraine approved by Resolution of the Board of the National Bank of Ukraine No 363 dated 16.06.2014 to facilitate timely fulfillment of the Fund’s mandate involving payment of guaranteed deposit compensations to deposit holders and, thus strengthening public confidence in Ukrainian banking system.