03 March 2020
This was announced in the Fund after the National Bank summed up the results of assessing the quality of banks' assets (AQR).
A cash-free paid guarantee will be provided to banks participating in the Program for increasing the financial stability of the banking sector for 5 years at a rate of 3% per annum.
It should be noted that earlier the rehabilitation of banks was carried out by the Fund mainly through the use of the mechanism of direct redemption of problem assets. Thus, in the implementation of transactions for the repurchase of assets from banks, budget funds were also involved.
The advantage of the mechanism for providing a cash-free paid guarantee to banks over a direct redemption is to provide an opportunity for the shareholders of banks to independently cover assets with provisions or capital, thereby improving their quality and limiting potential risks.
In addition, the country's budget will receive additional income due to the payment of remuneration by banks under the guarantee provided.