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NBU to introduce refinancing scheme that would replace stabilization credits

NBU to introduce refinancing scheme that would replace stabilization creditsThe National Bank of Ukraine (NBU) will announce a scheme for providing emergency support with liquidity to banks if the latter face the outflow of deposits in the second quarter of 2016. The scheme will replace stabilization credits.

"We in the second quarter intend to introduce a new refinancing scheme that would replace stabilization credits. This is so-called emergency financial support line. We've agreed the scheme concept. It has been drawn up on the basis of similar lines of central banks in other countries, including the European Union," Deputy NBU Governor Oleh Churiy said at a press conference in Kyiv on Wednesday.

Churiy said that banks will be able to open these credit lines in the NBU. Key assets of banks, including property rights to credits secured by property collateral and property rights to consumer credits issued to individuals can be used as collateral. Additionally, the NBU will add Ukrainian eurobonds to the list of instruments that can be used as collateral.

Read also: 'The work on the credit register is underway' - Deputy NBU Governor

"Discount for collateral will depend on its type. It will vary from 25% to 80-90%," he said.

The credit lines will be opened for one year. The tranche period is three months. The credit rate will be pegged to the NBU refinancing rate.
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