Council for Financial Stability states lowering of systemic risks

Council for Financial Stability held a meeting chaired by the Head of the National Bank Valeriya Gontareva, involving Minister of Finance Oleksandr Danylyuk, heads of the national regulating agencies for the financial market Tymur Khromaev and Igor Pashko as well as managing director of the State Deposit Fund Kostyantyn Vorushylin on May 24.

The Council stated an improvement of the economic situation in Ukraine since last Council’s meeting in the beginning of March this year. The major points of the improvement include inflation which slowed down to the one-digit rate, the resumed economic growth, gradual re-gain of trust to the banking sector by citizens and business as we as the stabilized currency market. However, more time is needed to entrench these positive trends.

At the same time, certain risks for the financial stability are still in place. Council member emphasized the importance of the second review under the IMF program “Extended Fund Facility”. The IMF mission had a productive stay in Ukraine, and the efforts of the Ukrainian Government should be focused on the implementation of preliminary measures set by the IMF which are the basis for receiving the next tranche from the IMF and other international partners.

Taking into account the favorable trends, Council members approve further liberalization on the currency market. It was also agreed on feasibility to abolish a pension fee charged on the purchase of foreign currency.

The Council also discussed the current operation of state-owned banks. The Ministry of Finance confirmed its plans to implement best practices in corporate management at state-owned banks and to start preparations to attract foreign investors for the state-owned banks.