NBU sets floating rate for long-term refinancing loans at refinancing rate level, debut tender on May 8
The National Bank of Ukraine (NBU) set a floating rate for long-term refinancing loans for the period of 90 days at the refinancing rate level, and the debut tender for up to five years will be held on May 8, the NBU press service said on Tuesday.
According to the statement, to stimulate the economy, a fixed variable (constant value) for long-term refinancing loans and loans for up to 90 days will not be included in the cost of these loans and is equal to zero.
Refinancing loans will be provided through quantitative tenders without limiting the volume. The refinancing volumes will be limited only by floating charge held by banks, which may include government domestic loan bonds, deposit certificates of the NBU, foreign currency, and in the near future government-secured corporate bonds, as well as municipal bonds.
The NBU said that from April 30 to June 30 tenders to maintain liquidity of banks for up to 90 days will be held weekly on Fridays, and to provide long-term refinancing from one to five years, once a month every second Friday of the month, starting from May 8.
The regulator said that in order to maintain the liquidity of banks, the frequency of holding tenders to maintain liquidity and the term for providing loans from 30 to 90 days had been previously increased. In addition, the NBU expanded the list of eligible collateral that banks can provide for refinancing, as well as introduced additional instruments, including long-term refinancing for a period from one to five years.