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16:09
NEW PROCEDURE OF FORMING BANKS' RESERVES TO NEGATIVELY INFLUENCE CREDITING, AUB SAYS

Kyiv, July 30 (Interfax-Ukraine) – The new procedure for forming banks' obligatory reserves will negatively influence the revival of the crediting economy, according to a statement of the Web site of the Association of Ukrainian Banks (AUB).

"The banks say that the new procedure of forming obligatory reserves will negatively influence both banking activity and reviving the crediting economy. The AUB proposed that the procedure in which the banks form part of their obligatory reserves on special accounts in the National Bank of Ukraine (NBU) be cancelled, leaving the procedure only as a measure of influence on those banks that regularly violate banking legislation," the statement reads.

As reported, the NBU decided to combat the hryvnia's devaluation through transferring 40% of the banks' obligatory reserves to its own separate special accounts. A corresponding NBU resolution was approved on July 21. It comes into effect on August 3.

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