The NBU expanded the list of government bonds for banks: they can cover up to 60% of reserves with them

The National Bank has expanded the list of government bonds that banks can use to cover part of their mandatory reserves. Banks can count such government bonds toward covering up to 60% of reserves, which should encourage them to buy government bonds more actively and help finance the budget without money printing.

Dilo reports

citing an NBU statement.

One more issue of benchmark government bonds has been added to the list,

which the Ministry of Finance first placed on 1 September 2026.

After the expansion, the list will contain 21 issues of government

securities.

What this means for banks and the budget

Mandatory reserves are the portion of funds that banks must

set aside in accordance with NBU requirements. At the same time, the regulator allows covering up to

60% of their amount with designated government bonds.

Thus, including new government bonds in this list makes

them more attractive to banks, since the securities can simultaneously be used

to meet reserve requirements.

For the state, this should support demand for government bonds during

Ministry of Finance auctions. Funds raised through the sale of bonds

are directed to finance the state budget without direct money issuance.

The National Bank forms the list of benchmark government bonds taking into account

proposals from the Ministry of Finance.

Recall that in July the NBU already expanded

the list of benchmark government bonds that banks can use to cover

part of their mandatory reserves. At that time, a new issue of government bonds

was also added to the list.