October 25, 2017 | Cbonds
|This Monday, although the Treasury paid UAH2.34bn in VAT refunds, causing liquidity to rise, positive impact of Treasury operations amounted to only UAH1.67bn. Additional support came from an exchange of cash into reserves that caused reserves to increase UAH0.85bn.|
Finally, autonomous non-monetary operations caused liquidity to increase UAH2.50bn to UAH77.95bn as banks' correspondent accounts with the NBU rose UAH1.89bn to UAH53.36bn and total CDs outstanding were up UAH0.61bn to UAH24.89bn.
Investment implications: VAT refunds were very important to increase liquidity, especially as collected revenues on Monday were little changed from the previous day. Although current expenditures were not significant, as the net impact on Treasury operations was significantly lower than VAT refunds, yesterday's UAH5.19bn VAT refund should support liquidity to stay at its usual level, as the total balance will depend on other Treasury operations.
|Full company name||ICU|
|Country of risk||Ukraine|