The National Bank of Ukraine (NBU) on December 28 bought government domestic loan bonds for UAH 25.8 billion from PrivatBank to settle the debts on refinancing loans.

The Finance Ministry issued the bonds to additionally capitalize the bank after its nationalization.

The NBU said that the bank mainly sent the funds to pay the debt to the central bank on refinancing loans.

"Yesterday, after monetization, PrivatBank paid the debt to the regulator. Thus, the funds would not be sent to cover outflow of deposits and would not affect the currency market and inflation," the NBU said.

The NBU repeatedly denied an allegation that outflow of deposits from the bank provokes large demand on the foreign currency market.

"From December 19 inflow of funds of the public to other banks was twice more than outflow of deposits of individuals from PrivatBank. In addition, the period of deposit outflow was only three days and then depositors started returning their funds to the bank," the NBU said.