The National Bank of Ukraine (NBU) from April 4, 2016 will introduce the possibility of using rollover and bonds of international financial institutions (IFIs) for overnight credits, direct repo transactions and refinancing credits provided for the period of up to 90 days at tenders to expand the possibilities of banks to manage liquidity.

"The amendments would allow banks to satisfy their short-term needs in liquidity. However, the strengthening of flexibility of liquidity of the banking system is the condition for the effective realization of the monetary policy as part of the inflation targeting regime," the NBU said on its website on Tuesday.

According to the report, the amendments were made by NBU resolution No. 90 of February 18 and resolution No 100 of February 23 to the provisions on the application of standard tools to regulate liquidity of the banking system and the technical procedure for carrying out transactions with these tools by the NBU.

"The possibility of using the rollover scheme – the provision of a credit to a bank to fulfill liabilities undertaken earlier – was introduced. The rollover could be used to pay refinancing and overnight credits where government bonds and NBU's deposit certificates were used as collateral," the regulator said.

The NBU added that now the central bank accepts bonds of IFIs as collateral not only for refinancing credits, but also for overnight credits and direct repo transactions. Now only government domestic loan bonds and NBU's deposit certificates can be used as collateral for overnight credits and only domestic loan bonds for direct repo transactions.

"Third, the possibility of increasing, cutting of replacing collateral for refinancing credits is provided. Now there was a possibility of cutting it if the credit was partially repaid," the NBU said.