Banks' accounts fall below UAH20.0bn

Обзор облигаций 10.09.2015 Banking sector liquidity fell UAH2.03bn to UAH68.23bn yesterday, close to the level set at the end of last month. Banks' correspondent accounts with the NBU fell UAH4.97bn to UAH19.71bn, just UAH0.31bn more than the lowest level seen this year at the beginning of June. Total CDs outstanding rose UAH2.94bn to UAH48.82bn. Investment implications: Banks significantly increased the volume of ON CDs at Tuesday's tender, causing significant increase in this indicator as other outflows caused liquidity to decline. There could be could be additional impacts from the UAH3.00bn Oschadbank repayment of refinancing loans to the NBU as well as FX purchasing by Naftogaz or other residents for payments abroad. We expect this to be the lowest of this week with liquidity recovering immediately.