Bloomberg News

Ukraine’s Central Bank May Ease Lenders’ Required Reserves

November 24, 2011

Nov. 24 (Bloomberg) -- Ukraine’s central bank said it may further ease reserve requirements for lenders to boost credits should inflation meet the government’s 8.9 percent forecast this year.

The amount of reserves banks hold on a special account at the central bank will fall to 70 percent from 100 percent on Nov. 30. The move will increase liquidity at financial institutions by 4 billion hryvnia ($498.94 billion) to 4.5 billion hryvnia daily, Serhiy Korablin, the central bank’s head of analyst and money and credit markets, told journalists today.

“We hope, it won’t add much pressure on inflation,” he said.“Should the additional resources boost lending, one may expect further steps on easing reserve requirements” next year.

--With assistance from Kateryna Choursina in Kiev. Editor: Alan Crosby

To contact the reporter on this story: Daryna Krasnolutska in Kiev at dkrasnolutsk@bloomberg.net;

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net;


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