Ukraine's monetary base up 20%, money supply 17% in 2013
KYIV. Jan 16 (Interfax) - Ukraine's monetary base expanded by 20% to UAH307.2 billion and monetary supply grew by 17.2% to UAH906.3 billion in 2013, Olena Scherbakova, director of the National Bank of Ukraine's (NBU) Monetary Policy Department, said.
"Last year we were conducting a stimulus policy as money supply was high," she told reporters.
Total loans for the economy grew by 11.9%, to UAH905.9 billion in 2013 (UAH7.993/$1 on Jan. 16).
Ukraine saw a 6.4% rise in the monetary base and a 12.8% increase in money supply in 2012.
Scherbakova said the recession currently seen in the country has made the issue of fostering the national economy with monetary tools more important.
"The low inflationary environment gave the central bank more space on the market," she said.
The expansion of banks' liquidity late in 2013 was connected with the influence of seasonal factors, namely an increase in settlements in the budget sector.
"Liquidity is high. Therefore, the NBU has been recently working to soak up the [excess] resources. We sell our deposit certificates and absorb the liquidity to have UAH29-30 billion on correspondent accounts," she said.
