January 25, 2018 | Cbonds
This Tuesday, the Treasury paid UAH4.22bn in VAT refunds, significantly increasing the positive impact from non-monetary operations This offset outflows via the FX auction and pushed liquidity up UAH2.31bn to 100.68bn, allocating additional funds to reserves. Banks' correspondent accounts with the NBU rose UAH2.26bn to UAH55.53bn while total CDs outstanding increased a mere UAH0.05bn to UAH45.16bn.
The net positive impact from Treasury operations was UAH3.44bn of inflows into the banking system. Combined with inflows from cash exchanged into reserves, non-monetary operations amounted to UAH3.76bn. Outflows to the NBU via monetary operations, mainly the FX auction, was UAH1.46bn. One bank's ongoing ON loan continued to rollover this Tuesday. At the same time, the NBU did not offer 14-day CDs; all funds from CD redemptions were invested in ON CDs.
Investment implications: Banks paid UAH2.31bn from Tuesdays auction, refinancing UAH0.9bn. With yesterday's VAT refund of UAH4.96bn, the Treasury positive impact on liquidity bolstered it above UAH100bn.
|Full company name||ICU|
|Country of risk||Ukraine|