NBU has received new funds for PrivatBank

The national Bank of Ukraine (NBU) for the repayment of PrivatBank (Dnipro) refinancing loans bought bonds internal state loan (government bonds) to 25.8 billion UAH, issued by the Ministry of Finance for recapitalization of financial institutions after its nationalization. About it reports a press-service of the NBU.

It is reported, received from the sale of securities of the funds PrivatBank mainly directed on repayment of debts to the Central Bank for refinancing loans.

“Yesterday, after monetization, PrivatBank repaid this debt before the regulator.Thus, these funds will not be used to cover outflows of deposits of the Bank and, accordingly, will not have any substantial impact on the currency market and the rate of inflation,” – said the Central Bank.

The national Bank thus has repeatedly denied the allegation that the outflow of deposits from the Bank provokes the increased demand in the foreign exchange market.

“On 19 December, the inflow of funds in other banks is twice as high as the outflow of deposits from PrivatBank. Moreover, the period of their outflow from the Bank was short – only three days, after which the return of public funds to Finance financial institutions have resumed,” – says the NBU.

As reported, after the government’s decision on nationalization of the NBU, PrivatBank 18 Dec gave him a loan refinancing of 15 billion UAH under 16% annual for the term up to 30 December 2016 to support liquidity and ensure continuity of customer service, operation of branches and ATMs, timely payments.

In addition, on 22 December, the NBU has provided another PrivatBank UAH 10 billion refinancing to maintain liquidity of the Bank.