NBU to set similar rates for forming mandatory reserves against bank deposits in hryvnias and foreign currency

The National Bank of Ukraine (NBU) plans to set similar rates for forming mandatory reserves against fixed-term bank deposits in foreign currency and hryvnias, fixing them at 3.5% and against call deposits in foreign currency and hryvnias, fixing them at 6.5%.

The leveling of mandatory reservation rates was announced at a meeting between the NBU and the largest Ukrainian banks on Monday, a source in the banking sector told Interfax-Ukraine.

"Similar rates are to be set both for [reserves] in foreign currency and hryvnias: 6.5% for call deposits and 3.5% for fixed deposits. The calculation of the reserves will also include cash worth 50%, while indexed and foreign-currency-denominated government domestic loan bonds won't be included," the source said.

Along with the liberalization of bank reserve formation requirements, the NBU will toughen control over their fulfillment, the source added.

As was reported, NBU officials announced plans to review banks' mandatory reservation requirements in September.

The current requirements foresee a zero rate for deposits in hryvnias, while the rate for foreign currency on current accounts is set at 10% for legal entities and 15% for individuals. At the same time, the rate for short-term deposits in foreign currency is fixed at 10% and for fixed deposits in foreign currency at 7%.

The source also said that the NBU on Monday confirmed previously announced macroeconomic indicators: GDP in 2014 is expected to decline by 7.5% amid 25% inflation; whereas a 4.3% GDP decline is predicted in 2015 amid 13% inflation.