The national Bank of Ukraine does not support the bill on temporary assignment requirements of the NBU as a secured creditor under the credit agreements refinancing of insolvent banks by the fifth line of creditors (No. 2459).About it reported in a press-service of the NBU.”The national Bank does not support the bill because it aimed at undermining its institutional capacity. The author of the bill actually proposes to deprive the rights of the NBU to the guarantee for loans of insolvent banks”, – explained the press service of the regulator.As noted in the press service, one of the key functions of the NBU – to ensure financial stability, including through the provision of refinancing loans to banks. If the financial institution does not return the received funds to the NBU, it is detrimental to the state, and to minimize these risks, the national Bank provides these loans to refinance only under the liquid collateral, the report States.”Losing the right to collateral for loans of insolvent banks, the NBU, in accordance with the provisions of the law “On the National Bank of Ukraine” will be forced to form reserves for expected credit losses on such loans, which will increase its costs and, consequently, reduce the amount of its profits are transferred to the state budget of Ukraine”, – said the regulator.As reported, the Deputy head of the parliamentary Committee on Finance, tax and customs policy, Aleksandr Dubinsky (fraction “servant of the people”) on 15 November was registered in the Parliament a draft law on the temporary assignment of requirements of the NBU as a secured creditor under the credit agreements refinancing of insolvent banks by the fifth line of creditors.As stated in the explanatory Memorandum to the bill, this would apply only to banks that as of 1 January 2019 has already been classified as insolvent and the liquidation procedure which has not been completed. Proposed law the provision is temporary and will lose their action when all these banks will be liquidated or all of the refinancing loans of these banks will be returned.The explanatory Memorandum States that the largest banks that were deemed insolvent (banks “Delta”, “Nadra”, “VAB”, “Finance and Credit”), from 30% to 90% of property was taken as collateral to the NBU. In addition, in accordance with regulations of the NBU, as security of refinancing loans to banks was made by the best assets of banks, which estimated the cost at times exceeded the value of the loan refinancing, and investors were left with bad debts.