As part of the recovery for CB PRIVATBANK PJSC, the National Bank of Ukraine moved ahead with the monetization of domestic sovereign bonds issued by Ministry of Finance following the takeover of this bank by the state. To that end, on 12 January 2017, the NBU purchased domestic sovereign bonds for a total of UAH 1.4 billion. 

Funds received by CB PRIVATBANK PJSC from the sale of domestic sovereign bonds to the NBU were set aside as required reserves, meaning that these funds would be held in the bank’s correspondent account with the NBU.

Therefore, as the NBU said earlier, the amount of monetization of domestic sovereign bonds for CB PRIVATBANK PJSC is insignificant and the funds arising from this monetization will not be used to cover deposit outflows from the bank and thus would be unable to exert significant pressure on the FX market and inflation. As a side note, on 28 December 2016, the NBU monetized UAH 25.8 billion worth of domestic sovereign bonds for this financial institution.  Overall, a total of UAH 27.2 billion worth of bonds was monetized for CB PrivatBank PJSC.