The National Bank of Ukraine (NBU) is expanding the list of benchmark government domestic loan bonds, at the expense of which banks are able to cover part of the volume of required reserves.
This is stated in the message of the NBU, Ukrainian News Agency reports.
Thus, from June 11, banks have been given the opportunity to include the benchmark government bonds with the identification number (ISIN) UA4000227490 in the coverage of mandatory reserves.
The attached issue of securities was placed for the first time by the Ministry of Finance of Ukraine at primary auctions on May 2, 2023.
According to the National Bank's estimates, such a step will contribute to a further increase in activity at the auctions of the Ministry of Finance for the placement of government bonds, which will make it possible to avoid direct financing of the budget deficit by the National Bank in 2023.
The list of benchmark government bonds is determined by the National Bank taking into account the proposals of the Ministry of Finance.
From June 11, 2023, it will include seven securities issues, six of which were identified in January-March 2023 (UA4000227045, UA4000227094, UA4000227102, UA4000227185, UA4000227193 and UA4000227201).
As Ukrainian News Agency earlier reported, from January 11, 2023, banks will be able to cover up to 50% of the total required reserves at the expense of a specified list of benchmark government bonds.
At the same time, there is an exception to this rule: the mechanism for covering the benchmark government bonds does not apply to the part of the reserves that banks form in connection with the increase in mandatory reserve standards for certain types of personal funds from March 11 and May 11.
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