Starting 18 April, the NBU will hold only once per week the tenders it conducts to provide refinancing loans that mature in up to a year. The tenders will take place every Friday. Up until now, they have been held daily.
“The banking system has emerged from the ‘crash test’ unscathed and continues to be stable. Since the war broke out, the liquidity of the banking system has increased by more than UAH 50 billion, and is now in excess of UAH 200 billion. This allows banks to actively support customer transactions within available funds and provide the credit support needed for economic recovery.
In the early days of the war, banks generated strong demand for liquidity support. In contrast, banks can currently afford to repay their refinancing loans before they mature. With this in mind, the NBU has decided to reduce the frequency with which it holds tenders to issue refinancing loans with the maturity of one year or less,” said NBU Deputy Governor Yuriy Heletiy.
In an emergency, the NBU can announce refinancing tenders on other weekdays.
To meet the challenges posed by the war, the NBU on 24 February 2022 introduced refinancing loans that are granted for up to one year, an additional liquidity-supporting instrument for banks. These loans can be extended by another year.
The procedure for providing such refinancing loans is outlined here