The NBU continues tender refinancing

nbuThe apparent stagnation in the banking sector is gaining momentum, as evidenced by the frantic attempts to cash out additional bank loans by any means necessary. The number of tender applications is rapidly growing, some financial institutions have already been liquidated, and despite the NBU constantly reporting a shortage of funds and growing debt, funds for refinancing continue to be allocated.
Thus, on May 25, as part of the latest tender, two requests for a total of 800 million hryvnias were satisfied, and, apparently, the “support of the pants” of Prominvestbank continues – a financial institution with Russian roots, which in the first quarter alone increased its debt to the NBU to the level of 467,600,000 hryvnias (from 199,900,000 hryvnias).
Why? This is explained by a classic case of dependence on the situation: in the current situation, the liquidation of this colossal conglomerate could dramatically increase the amount (that individual depositors will have to pay under the bank deposit insurance program) to astronomical amounts (amounts in the range of 30-50 billion hryvnias have been cited).
This could trigger a real collapse in the already depleted reserves of the domestic guarantor. It appears easier to get off lightly by approving the refinancing request, despite mounting bank loans and the threat of potential default. However, financial experts predict that the full impact of this policy will become clear within the next month or two.

SKELET-info

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