In H1 2016, the solvent banks reduced debt due to the National Bank of Ukraine under refinancing loans by 36.5%. According to data from banks’ financial statements, as of 1 July 2016, the total outstanding debt stood at UAH 32.25 billion, including the principal amount of UAH 31.89 billion.

In H1 2016, the banks’ total outstanding debt to the NBU shrank by UAH 18.5 billion.

During H1 2016, all the banks that have received stabilization loans and liquidity support loans reduced their debts to the NBU. Loan servicing is performed as a routine procedure in accordance with approved schedules.

Since mid-2015, only monetary tools with a maturity of up to 3 months have been used by the NBU to support banks’ liquidity. Banks receive refinancing loans through liquidity-providing tenders. All banks that submit applications to participate in such tenders and pledge high liquid collateral (domestic sovereign bonds, certificates of deposit, foreign currency) are granted loans automatically.

In 2016, all the loans have been granted through tenders against collateral of domestic sovereign bonds, which makes these loans risk-free.

For reference: Banks’ debt due to the NBU, according to banks’ financial statements