The solvent banks reduced debt due to the National Bank of Ukraine under refinancing loans by 55% in 2016 and by 18% in Q4.
According to data from the banks’ financial statements, as of 1 January 2017, the total outstanding debt stood at UAH 22.99 billion, including the principal amount without accrued interest totaling UAH 22.57 billion.
The banks’ total outstanding debt to the NBU shrank by UAH 27.9 billion in 2016 and by UAH 5.06 billion in Q4. Most banks that have been granted stabilization loans and liquidity support loans reduced their debts to the NBU in Q4 2016. One bank has paid off the debt in full, while another two banks have built up their debt.
As a side note, since mid-2015, the NBU has ceased issuing stabilization loans and used only monetary liquidity support instruments with with maturities of up to three months. Refinancing loans are provided to banks through liquidity-providing tenders. Loans are automatically granted to all banks that submit applications to participate in such tenders and pledge high liquid collateral (domestic sovereign bonds, certificates of deposit, foreign currency), which makes these loans risk-free.