2024-09-19T15:02:00+03:00 Finance 2024-09-24T04:00:01+03:00

Ukrainian news

NBU lowers rates for 3-month deposit certificates and refinancing loans

NBU lowers rates for 3-month deposit certificates and refinancing loans

The National Bank has lowered rates for 3-month deposit certificates and refinancing loans.

This is stated in the message of the NBU, the Ukrainian News agency reports.

The Board of the National Bank of Ukraine made a decision to modify the parameters of other monetary policy instruments and operations.

Thus, from September 20, 2024, the rates for three-month deposit certificates will be reduced to 15.5%.

Interest rates on refinancing loans are also reduced - to 16%, and the maximum term of their provision is limited to 14 days.

Rates on overnight deposit certificates will continue to be equal to the discount rate.

At the same time, from October 11, 2024, the National Bank of Ukraine will increase mandatory reserve requirements by 5 percentage points (with the exception of regulations for time deposits of natural persons in hryvnia for a term of 93 calendar days or more).

In addition, from the same date, the NBU will increase to 60% the share of required reserves that banks can cover at the expense of the benchmark government domestic loan bonds.

From October 11, 2024, the standards of mandatory bank reserving will be:

- for term funds and deposits of individuals with a minimum initial maturity of 93 calendar days or more in national currency - 0% (does not change), and in foreign currency - 15% (until October 11 - 10%);

- for funds on demand and funds in the current accounts of individuals, as well as for time funds and deposits of individuals with a minimum initial repayment period of up to 92 calendar days in national currency - 25% (until October 11 - 20%), and in foreign currency – 35% (until October 11 – 30%);

- for funds on demand and funds in the current accounts of legal entities, term funds and deposits of legal entities (except for other banks) in national currency - 15% (until October 11 - 10%), and in foreign currency - 25% (until October 11 - 20%);

- on deposit funds and funds on current accounts of other non-resident banks and loans received from international (except financial) and other non-resident organizations in national currency - 15% (until October 11 - 10%), and in foreign currency - 25% (until October 11 – 20%).

According to the NBU, these steps will not create risks for the stability of the foreign exchange market and the return of inflation to the target on the policy horizon.

Instead, the combination of these measures will increase banks' flexibility in managing their own liquidity and stimulate additional demand for government domestic loan bonds, which will strengthen the government's ability to raise the necessary volumes of financing on the domestic debt market.

As the Ukrainian News agency earlier reported, the NBU has retained the discount rate at 13% since September 20.