NB of Kazakhstan will grant day and overnight credits to the banks

/IRBIS, Nov.17, 99/ - According to REUTERS, the National Bank of Kazakhstan approved the resolution and rules for granting day and overnight credits to the banks to settle their accounts. Chairman of the National Bank says: "The board of the National Bank have adopted rules for granting bank loans. We, as many other central banks, have created so-called refinancing "window". The banks may get either a day, or so-called "overnight" loan to support their current liquidity". An employee of the National Bank informed REUTERS that financing of the banks could start not earlier than two weeks from now after all banks will be informed of new rules and agreements will be signed. Marchenko also said that each bank had a financing quota. Excessive financing over the quota will be defined as special credits and given by the approval of the Board of the National Bank. The most important thing, according to Marchenko, is a clear-cut and transparent system. He added that the purpose of this credits was to launch the market for interbank credits, which has actually been nonfunctioning since 1995, and has functioned as repo market and backward repo with government securities. He said they wanted to turn on the interbank market with this impact. The National Bank relies on support of 15 major banks of Kazakhstan which joined collective deposit insurance fund. Marchenko said they believed to launch interbank market between those 15 banks, and others would get the situation right, and after developing the market the banks will not come to them for funds.