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National Bank of Ukraine reduces the reserve ratio to 0%

July 21, 2014



ENP Newswire - 21 July 2014

Release date- 17072014 - On July 15, 2014, the Board of the National Bank of Ukraine passed Resolution No. 419 amending the Provisioning Rules applied to deposits and loans in the foreign currency attracted by the authorized bank from nonresidents (hereinafter - Resolution).

This Resolution has amended the Provisioning Rules applied to deposits and loans in the foreign currency attracted by the authorized bank from nonresidents (hereinafter - Rules).

The Rules establish a procedure for provisioning under the contract whereby the authorized bank attracts a deposit/loan in the foreign currency from a nonresident with a maturity of 183 consecutive days or with a shorter maturity.

Banks were obliged to keep funds in reserve for each deposit/loan in the foreign currency attracted from a nonresident in an amount equal to 20% of the total value of the transaction.

The reserve ratio has been reduced from 20% to 0%.

Given funding constraints in the domestic and foreign markets, the move will provide banks with additional short-term liquidity to sustain their operating activities.


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Source: ENP Newswire


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