RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of February 24, 2022 No. 22

About features of maintenance of liquidity of banks during action of warlike situation

According to Item 20 of Article 7, to Articles 6, of 15, of 25, 42 and 56 Laws of Ukraine "About the National Bank of Ukraine", being guided by the Presidential decree of Ukraine of February 24, 2022 No. 64/2022 "About introduction of warlike situation in Ukraine", the approved Law of Ukraine "About approval of the Presidential decree of Ukraine "About introduction of warlike situation in Ukraine" of 24.02.2022 No. 2102-IX, adopted based on the offer of the National Security and Defense Council, and also in pursuance of requirements of the Regulations on regulation of the monetary and currency markets by the National Bank of Ukraine in the conditions of the special period approved by the resolution of Board of the National Bank of Ukraine of November 06, 2019 to No. 129/DSP, Item 11 of the resolution of Board of the National Bank of Ukraine of February 24, 2022 No. 18 "About work of bank system during introduction of warlike situation" for the purpose of minimization of systemic risks in the presence of signs of unstable financial condition of bank system, emergence of the circumstances menacing to stability of bank and financial system of the country the Board of the National Bank of Ukraine DECIDES:

1. The National Bank of Ukraine (further - National Bank) performs operations of refinancing for up to one year according to the Regulations on use of standard instruments of regulation of liquidity of bank system by the National Bank of Ukraine approved by the resolution of Board of the National Bank of Ukraine of September 17, 2015 No. 615 (with changes), according to the procedure determined by the Technical procedure for carrying out transactions by the National Bank of Ukraine by the standard instruments of regulation of liquidity of bank system approved by the resolution of Board of the National Bank of Ukraine of November 12, 2015 No. 783 (with changes) taking into account the features determined by this resolution and based on already signed existing general credit agreements.

Banks have the right to submit to National Bank general credit agreements and additional agreements to them in paper or electronic form.

The requirement of paragraph two of Item 1 of this resolution extends to all general credit agreements concluded since February 24, 2022 (in the presence) and additional agreements to them.

2. To National Bank if necessary to announce extraordinary tenders for liquidity support of banks about which to banks it is reported by program technological support and system of e-mail with placement of this information on the page of official Internet representative office of National Bank.

3. The decision on frequency of tendering process on maintenance of liquidity of banks, parameters of transactions on refinancing is accepted by the official, according to the order of National Bank on distribution of functional obligations performs the common directorship and controls activities of divisions, connected with regulation of the monetary market based on offers of Department of the public markets, Department of monetary policy and the economic analysis.

Inclusion of the securities offered by bank to asset pool (property) is performed by blocking as proof of securities on the account in securities for benefit of National Bank without entering of the corresponding data on their encumbrance into the State register of encumbrances of personal estate (further - GRODI), and also without check in GRODI lack of other encumbrances on assets (property) which are offered by bank for inclusion in pool. Requirements of paragraph two of Item 3 of this resolution extend to actions of National Bank without registration in GRODI which were made, since March 02, 2022.

Responsibility for absence in DRORM of other encumbrances on the assets (property) offered by bank for inclusion in pool and their transfer as a deposit is assigned to bank.

Securities are considered in the cost of asset pool (property) before the term of their repayment.

The cost of asset pool (property) pledged by bank in case of proper accomplishment of conditions of the general credit agreement by it, and considering that the bank on all loans granted by National Bank has no overdue debt (the main credit amount, interest for using by it), since September 19, 2022 it is calculated by formula:

Vp = Vpsv * To + Vpnv * (1-K),

where OP-cost of asset pool (property);

Vpsv - the cost of asset pool (property) calculated with use of fair value of the securities which are part of asset pool (property) and adjusting factors;

Vpnv - the cost of asset pool (property) calculated using nominal value of the securities which are part of asset pool (property);

To - share of the main credit debt, the received bank after September 19, 2022, including the loans granted on return of earlier obtained credits in the total amount of the main credit debt, the received bank according to the general credit agreement.

Determination of sufficiency of providing during processing of requests for inclusion of assets (property) to pool/exception of assets (property) from pool/replacement of assets (property) in bullet is performed with use of fair value of securities and adjusting factors if requests lead to reduction of the cost of asset pool (property) calculated with use of fair value of the securities which are part of asset pool (property) and adjusting factors.

3-1. The loan interest rate of refinancing, with a provided term over 90 days taking into account features of this resolution (further - the credits over 90 days), in case of change of discount rate of National Bank is subject to adjustment during the term of use of such credits.

Condition of loan granting over 90 days is the consent of bank specified in the request of bank for participation in the tender for liquidity support of banks, for adjustment of interest rate in case of change of discount rate of National Bank.

3-2. Loan interest rate more than 90 days:

1) it is determined taking into account constant which size is established by separate board decision of National Bank. The established size is invariable during all term of use of the credit more than 90 days;

2) it is established during:

the quantitative tender for maintenance of liquidity of banks at the level of discount rate plus the established size;

the percentage tender for maintenance of liquidity of banks at the level which cannot be lower, than discount rate plus the established size.

3-3. The National Bank in case of change of discount rate of National Bank no later than the next working day from the date of decision making about change of discount rate of National Bank sends to bank the notification on interest rate realignment on the credit more than 90 days.

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