The National Bank of Ukraine has instructed state-run Ukreximbank to take measures to review borrowing conditions related to eurobonds issued in 2006, 2010, and 2013, which are to mature in 2016, 2015, and 2018 respectively.
This is stipulated in NBU resolution No. 249 on measures to ensure Ukreximbank’s arrangements to change foreign borrowing conditions.
“Change in the conditions of foreign borrowing by JSC Ukrexinbank should ensure the bank’s financial stability and solvency, enable further observance by the bank of the economic requirements set by the NBU, limits for the open forex position and the procedure for the formation of mandatory reserves, [to] guarantee liquidity, the ability to meet obligations before depositors on time and smoothly handle transactions,” the NBU said on Wednesday.
According to the NBU, the current resolution was passed with due regard to the complicated economic and political situation in Ukraine and the war in the country’s east, and aims to prevent the worsening of banks’ liquidity and instability in the banking sector and guarantee the implementation of the macroeconomic indicators stipulated in the Extended Fund Facility program with the International Monetary Fund.
