NBU calling on government to more actively use state guarantees to bolster crediting

13:38

The National Bank of Ukraine (NBU) has called on the government to make more active use of state guarantees as collateral for banking credits.

"One of the incentives for boosting the crediting of the Ukrainian economy is the strengthening of the state's role in simplifying access to credit funds for top-priority sector companies, and state-run enterprises, through the issue of guarantees to creditor banks," reads an NBU letter forwarded to Interfax-Ukraine.

According to the letter, greater use of the mechanism of subsidizing interest rates by the state could be used as an additional incentive to stir up crediting of the real economy.

The NBU said that currently the Ukrainian banking system has enough funds to credit the economy, and the level of free liquidity is evidence of this.