On February 12, 2015, the Board of the National Bank of Ukraine adopted  Resolution No. 104 On Certain Issues Related to the Money Market Regulation (hereinafter – resolution No 104) whereby a bank can apply to the National Bank of Ukraine for:

an overnight loan secured by Ukrainian government bonds or NBU certificates of deposit in an amount not exceeding 100% of the required reserves established in accordance with the applicable norms in the previous maintenance period;

an unsecured overnight loan in an amount not exceeding 25% of the required reserves established in accordance with the applicable norms in the previous maintenance period.

The above-mentioned modifications will enhance interest rate policy efficiency by setting stricter overnight rate band limits.

Resolution No. 104 enters into force from February 16, 2015.

For reference

The rules governing the provision of overnight loans that were effective until February 16, 2015, stipulate that a bank can apply to the National Bank of Ukraine for:

an overnight loan secured by Ukrainian government bonds or NBU certificates of deposit in an amount not exceeding 70% of the mandatory reserves made by the bank in accordance with the applicable required reserve ratios and kept in its correspondent account with the National Bank of Ukraine in the previous provisioning period under report;

an unsecured overnight loan in an amount not exceeding 25% of the mandatory reserves made by the bank in accordance with the applicable required reserve ratios and kept in its correspondent account with the National Bank of Ukraine in the previous provisioning period under report.