NBU decides to send cash hryvnia to Europe as a part of Euro 2012

The National Bank of Ukraine (NBU) has decided to send cash hryvnia to European countries to ensure tourists can buy Ukrainian currency before arriving in Ukraine for the Euro 2012 European football championship, reads a posting on the NBU's Web site.

"We're sending the hryvnia to Europe to lift barriers between our countries and for the convenience of tourists who plan to visit Ukraine during Euro 2012. Residents of European countries will be able to buy the Ukrainian currency before arriving in Ukraine," reads the report, citing NBU Governor Serhiy Arbuzov.

The report says that the NBU governor presented an initiative to open a representative office of a state-run Ukrainian bank in Switzerland.

"Ukraine needs additional funds," he said.

He said that it is rather cozy for the foreign capital in the Ukrainian banking system.

"All banks with foreign capital continue operating in Ukraine, and no one has announced plans to leave the country. The only thing is that in some cases, banks simply changed one foreign owner for another, and capital is naturally being replaced," he said.

As for the situation on the domestic resource market, the report says that the NBU governor believes that it is not appropriate to quickly boost free hryvnia liquidity at banks.

"This is first linked to the fact that we do not register a large-scale growth in crediting of the real economic sector. Secondly, banks have enough foreign currency, which could be sold. As soon as we see a trend to the expansion of the banks' credit portfolios, we'll support their liquidity," Arbuzov said.