The National Bank of Ukraine expands refinancing opportunities available to banks to support their liquidity. On 16 February 2016, the NBU Board issued Resolution No. 83 On Amendments to the Regulation on the Use  by the National Bank of Ukraine of Standard Instruments for Regulating Liquidity in the Banking System.

Up until now, banks were allowed to obtain refinancing loans from the NBU in the amount of not more than 50% of their regulatory capital and of not more than 50% of the total loan amount offered to banks through liquidity-providing tenders. NBU Board Resolution No. 83 repealed this requirement. The refinancing opportunities offered to banks will only be limited by the available collateral (domestic sovereign bonds, certificates of deposit, and foreign currency) and the total loan amount offered through liquidity-providing tenders.

At the same time, the NBU has provided problematic banks with access to liquidity-providing operations. This move will enhance the NBU’s ability to act as a lender of last resort.

Resolution No. 83 will come into effect from 17 February 2016