NBU lacks powers to monetize govt bonds in portfolio of state-run banks, enterprises

11:29, 26.10.2018 1 min read

The Board of the National Bank of Ukraine (NBU) plans to follow the recommendation of the Council of the NBU regarding the limitation of government-issued securities on its balance sheet, NBU Governor Yakiv Smolii has said.

"As for the monetization of government domestic loan bonds, which are currently in the portfolios of state-owned enterprises and state-run banks, the NBU has already expressed its opinion and used the recommendations of the NBU Council on limiting government securities on the balance sheet of the National Bank," he said at a monetary briefing in Kyiv on Thursday.

As reported, the NBU Council at a meeting on July 16 recommended the board to refrain from purchasing government securities.

The council also instructed the board by October 1, 2018 to develop a methodology for calculating and establishing parameters for the upper limit of the volume of government securities in the NBU portfolio.