Ukraine’s central bank lowers discount rate by 0.5pps to 6.5%.

By bne IntelliNews August 12, 2013

The National Bank of Ukraine has decided to cut the discount rate by 0.5pps to 6.5% as of August 13. The National Bank aims to keep pursuing the policy of improving performance of the national currency. The central bank expects the cut to lower the interest rates on loans and increase the availability of credit resources for improving the lives of citizens.

In addition, the lowering of the discount rate is planned to serve as a supporting factor for the implementation of the State Program for Enhancing Economic Growth in 2013-2014, on the implementation of which the government and the National Bank of Ukraine are currently working.

According to Capital Times Managing Partner Eric Naiman, there is no direct impact of the discount rate on deposit and credit programs in Ukraine. This is the consequence of the NBU tough policy, which justly fears the cheap hryvnia appearance on the currency market and, respectively, its destabilization.

Moreover, reduction of the discount rate to 6.5% should cut the average rate on credits for legal persons to 16.5-17%. At the same time, not only rates will be cut on credits, but on deposits in large banks, believes, President of the Ukrainian Analytical Center Oleksandr Okhrimenko.

The NBU last lowered its discount rate on June 10, 2013 - by 0.5pps to 7%. Until then, it kept the discount rate at 7.5% from March 23, 2012, when it was cut from 7.75%.

Related Articles

London High Court throws out Ukraine’s bond case against Russia

The High Court in London on March 29 ruled that it would not be right for a $3bn Eurobond case brought by Russia against Ukraine to go to full trial since Kyiv has no “justifiable defence” for ... more

Russia's Sberbank selling its Ukrainian subsidiary

Russia’s largest bank Sberbank is selling its subsidiary in Ukraine to a consortium of investors that includes Latvia’s Norvik Bank and a private Belarusian company, Sberbank said in a statement ... more

20,000 people evacuated as "sabotaged" munitions store burns in Ukraine

About 20,000 people have been evacuated following explosions at Ukraine's largest arms depot in Balakliya near the eastern city of Kharkiv after what was claimed to be an act of sabotage. The base ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss