National Bank lowered the refinancing rate of commercial banks

The National Bank of Ukraine has lowered the refinancing rate of commercial banks.

This is stated in the decision of the regulator "On some issues of bank refinancing," published in the newspaper "Uryadovy Kurier" on May 27, the "UNIAN" reported.

The document takes effect from the date of publication.

"Interest rate on stabilization credits at time of granting such credit / modifying the loan agreement as regards the extension of the use of such loans shall be determined in annual interest at the level of one and a half of the NBU discount rate", – the text of the resolution states.

According to the resolution, the rate on loans to maintain liquidity of banks, which were granted after April 15, 2014, has been decreased to a level of double NBU discount rate, the rate on loans to maintain liquidity of banks that have developed financial recovery program, granted after March 1, 2014, has been reduced to one and half of the NBU discount rate.

In this case, the interest rate that has been changed during the term of the credit agreement is not subject to change.

According to the report, this reduction of rates should promote security and financial stability of the banking system, protection of the interests of depositors and creditors.

As reported, the National Bank of Ukraine in April 2014 reduced the refinancing of banks compared with March by 27.6% – to 23.4 billion hryvnias.

The weighted average interest rate for these operations in April amounted to 15.54% per annum (YTD – 13.41% per annum).

On April 15, the National Bank of Ukraine increased the discount rate from 6.5% to 9.5%.