OREANDA-NEWS. November 19, 2009. Last week there was published an article, called “The banks have been extended the refinancing credits” in the Kyiv Delo Business Weekly (http://delo.ua/dengi/banki/bankam-prodlili-kredity-refinansirovanija-133740/), reported the press-centre of Kyivska Rus.

Summing up all the raised questions, we offer you to pay attention to those ones, which were asked more frequently.
 
1. Why has the JSB Kyivska Rus made a request to the NBU for refinancing credit extension, given for the financial support at the end of the last year?
2. When and on what terms has the bank received the credit? What is the credit amount and what period of time is it extended for?

Rapid decline in the industrial production, shutdown of enterprises, unprofitable activity of almost all branches of economy, decline in the purchasing power, devaluation of national currency – it is not the whole list of crisis phenomena our country faces at the moment. Fully realizing the fact that the layer of small as well as medium business, being a basis of the middle class, is a pledge of economic stability in the country, and having a notion of difficult conditions for business management, the JSB Kyivska Rus has made a request to the NBU at the end of the previous year for intermediate refinancing credit with the aim of credit support of the commodity producers which are the Bank’s clients. The JSB Kyivska Rus has received a credit from the NBU during October and December for a period of 1 year against security of property rights to credits of entrepreneurs for the current needs in the amount of UAH 327,4 mln., at 16.5 % per annum. In November 2009, the abovementioned credit has been extended for 1 year, at 17.9% per annum.
 
3. How could influence a refusal of the NBU the activity of the JSB Kyivska Rus?
4. What is the Bank’s financial condition now? Does the bank lack liquidity?
The NBU’s refusal for intermediate credits prolongation could slightly influence the Bank’s liquidity. However, the Bank is capable of fulfilling its obligations towards its clients in time and stick to the economic standards due to sufficient liquidity. The Bank’s Management has always had a reasonable policy for the formation of deposit and credit portfolio, investment projects or any other bank transactions. There is an effective risks management system within the Bank. These and other factors give the bank an opportunity to solve independently any issues which may occur in present difficult situation. The JSB Kyivska Rus can function stably, maintain its liquidity at the sufficient level and have positive dynamics of financial results.