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RESOLUTION OF BOARD OF THE NATIONAL BANK OF UKRAINE

of December 14, 2016 No. 411

About approval of the Regulations on the emergency support of liquidity of banks by the National Bank of Ukraine

(as amended on 04-09-2020)

According to article 99 of the Constitution of Ukraine, Articles 7, of 15, of 42, of 55, 56 Laws of Ukraine "About the National Bank of Ukraine" and to Articles 66, of 67, of 71 Law of Ukraine "About banks and banking activity", for the purpose of assistance of financial stability of banks, including stability of financial system of Ukraine, the Board of the National Bank of Ukraine decides:

1. Approve Regulations on the emergency support of liquidity of banks by the National Bank of Ukraine (further - the Provision) which are applied.

2. The National Bank of Ukraine from the date of entry into force of this resolution does not consider the petition and banks about provision of stabilization loans according to Regulations on provision of stabilization loans by the National Bank of Ukraine to the banks of Ukraine approved by the resolution of Board of the National Bank of Ukraine of July 13, 2010 No. 327, registered in the Ministry of Justice of Ukraine on July 19, 2010 on No. 540/17835 (with changes) (further - No. Provision 327).

3. Return by banks of the stabilization loans granted by the National Bank of Ukraine according to requirements of the Provision No. 327, and change of conditions of credit agreements on such credits is performed according to regulations of the Provision No. 327 and conditions of credit agreements.

4. The National Bank of Ukraine before entry into force of Item 7 of the resolution of Board of the National Bank of Ukraine of June 30, 2016 No. 351 "About approval of the Regulations on determination by banks of Ukraine of the extent of credit risk on active banking activities" (further - the resolution No. 351) accepts in ensuring obligation fulfillment according to the credit agreement on the emergency liquidity support of bank (further - the credit agreement) property rights according to the credit agreements signed by bank provided that such credit agreements are signed not with the faces tied with bank, and also:

1) debt on credit agreements with legal entities, physical persons, including physical persons entrepreneurs, accomplishment of obligations on whom is in full provided with mortgage (except objects of construction in progress), are classified by I and II quality categories according to the regulatory legal act of the National Bank of Ukraine concerning forming and use of reserves for compensation of possible losses on active banking activities, the debt on the credit is considered according to the corresponding balance sheet account of bank at least 180 calendar days, the debt service level during the last 180 calendar days is in a row determined as "high" or "good";

2) debt on credit agreements with physical persons (according to the register of the credit agreements signed by bank) are classified by I and II quality categories according to the regulatory legal act of the National Bank of Ukraine concerning forming and use of reserves for compensation of possible losses on active banking activities.

5. Till January 2, 2017 inclusive:

1) the National Bank of Ukraine accepts as pledge property rights according to credit agreements which at the same time conform to the requirements determined in appendix of 1 Provision (which calculation of the extent of credit risk is perfromed in the test mode according to the subitem 2 of Item 2 of the resolution No. 351) and item 4 of this resolution;

2) the restrictions determined by the subitem 1 of Item 55 of the Section VII of the Provision do not extend to transactions overnight with banks which have financial condition not below class "B" according to the regulatory legal act of the National Bank of Ukraine concerning forming and use of reserves for compensation of possible losses on active banking activities.

6. To department of the public markets (Ponomarenko S. V.) to bring contents of this resolution to the attention of banks of Ukraine for use in work.

7. To impose control over the implementation of this resolution on the vice-chairman of the National Bank of Ukraine Chury A. E.

8. The resolution becomes effective from the date of, its official publication following behind day.

Chairman

V. A. Hontareva

Approved by the Resolution of Board of the National Bank of Ukraine of December 14, 2016 No. 411

Regulations on the emergency support of liquidity of banks by the National Bank of Ukraine

I. General provisions

1. This Provision is developed according to article 99 of the Constitution of Ukraine, the Economic code of Ukraine, the Civil code of Ukraine, the Laws of Ukraine "About the National Bank of Ukraine", "About banks and banking activity", "About pledge", "About mortgage", other legal acts of Ukraine and regulatory legal acts of the National Bank of Ukraine (further - National Bank) and determines conditions of implementation by National Bank of the emergency liquidity support of banks for the purpose of assistance of financial stability, including stability of financial system.

2. The National Bank performs the emergency liquidity support of solvent banks which have, according to National Bank, influence on stability of financial system, the temporary need for maintenance of liquidity for accomplishment of obligations to investors and other creditors (except the faces tied with bank) and exhausted other sources of maintenance of liquidity, including in the interbank credit market and by means of standard instruments of regulation of liquidity of bank system.

3. The emergency liquidity support of banks is the tool of short-term covering of temporary deficit of their liquidity which shall not be used as replacement of necessary additional capitalization of bank or the solution of its structural problems.

4. The National Bank estimates influence of bank on stability of financial system taking into account its quantitative and high-quality parameters of activities, and also condition of bank and financial system, the macroeconomic circle and availability of systemic risks.

5. The emergency liquidity support can be provided to bank provided that the structure of property of bank is not acknowledged as National Bank of opaque.

6. The National Bank in case of decision making on the emergency liquidity support of bank estimates its actual and forecast solvency, observance / non-compliance with the plan of capitalization (in the presence of the program of capitalization), and also considers analysis results of business model of the bank (in the presence) which is carried out according to administrative acts of National Bank concerning assessment of banks when implementing permanent banking supervision.

7. The National Bank performs the emergency liquidity support of bank by provision to bank of the credit on the conditions determined in this Provision.

8. The loan for the emergency liquidity support is granted to banks for liquidity support for the purpose of ensuring accomplishment of its obligations to investors and other creditors (except the faces tied with bank).

9. The loan for the emergency liquidity support of bank is granted for a period of up to 90 days.

The National Bank has the right to make the decision on prolongation of term of use of the credit for the emergency liquidity support of bank for a period of up to 90 days.

10. Aggregate term of use of the credit for the emergency liquidity support of bank taking into account all prolongation of term of its use cannot exceed one year.

11. The loan for the emergency liquidity support of bank is granted by one or several amounts (tranches).

The term of use of tranche cannot exceed the term of use of the credit.

12. The interest rate for each tranche is established at the level of the discount rate of National Bank operating on the date of provision of tranche plus two percent points, and the case of prolongation of term of use of tranche does not change before date of the actual return of this tranche in full, except for.

In case of prolongation of term of use of tranche the interest rate for them is established at the level of the discount rate of National Bank operating on the date of the conclusion of the agreement on prolongation of term of use of tranche plus two percent points.

13. Interest for using each tranche are charged according to conditions of the credit agreement on the emergency liquidity support of bank (further - the credit agreement), since day of receipt of funds of tranche on bank account and finishing in the afternoon, preceding date of the actual return of tranche.

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