Feb.9, 2019,  First Deputy Prime Minister / Minister of Economic Development and Trade of Ukraine Stepan Kubiv engaged in discussion on formation of the Medium-Term Strategy untill 2022  within the framework of the 13th Special Board of Governors Meeting of the Black Sea Trade and Development Bank (BSTDB)  in Thessaloniki (Greece).

During discussion of the Bank’s Medium-Term Strategy and Business Plan for the period of 2019-2022 Stepan Kubiv emphasized that the Bank should maintain a fair balance between the portfolio of projects and the share of the Bank's equity.

"Ukraine's share in the capital of the BSTDB is three times bigger than its credit portfolio, although we have very ambitious and ready-made projects. I insist that in 2019 the volume of financing of projects in Ukraine should be substantially increased to reach the level that corresponds to the share of Ukraine in the Bank's capital, " First Deputy Prime Minister claimed.

Stepan Kubiv also placed a special emphasis on adherence to balanced approaches to borrowing, reserving and investing in order to maintain a high credit rating and sound liquidity.

Stepan Kubiv also emphasized the importance of setting realistic goals and proposed to leave a number of the BSTDB’s projects in the public sector at the level of 20-25% instead of the proposed increase to 35%, and financing of infrastructure projects in the public sector (long-term and high-value ones) only if they were financially repayable or by participating in synergy with international financial institutions such as the World Bank, the EBRD, the European Investment Bank.

"Further development of the interstate cooperation of the countries of the Black Sea region encompasses the need to increase the volume of operations in the real sector of the economy, as they create the highest added value and jobs," First Deputy Prime Minister stressed.

In his speech, Stepan Kubiv  highlighted the significant economic changes in the Black Sea region in the field of security, international trade and logistics.

"Annexation of the Ukrainian Crimea by Russia, blockade of the Azov and Black Seas recognized by the resolutions of the General Assembly of the United Nations, illegal trade restrictions by Russia for the transit of goods from Ukraine - all this destroys long-term trade and economic relations, changes interregional relations and serves as a decisive factor for formation of a further BSTDB strategy in the Black Sea region," Stepan Kubiv underscored.

Background

The Black Sea Trade and Development Bank  is international financial institution consisting of 11 countries of the Black Sea region  and Southern Balkans and is designed for the development of trade and economic cooperation, maintaining peace, stability and prosperity in the Black Sea basin.