The National Bank of Ukraine named Ukraine’s priorities in cooperation with the IMF

Photo Ukrinform

The National Bank of Ukraine, in cooperation with the International Monetary Fund (IMF), plans to focus on important areas for the country.

This was reported by UA with reference to the Facebook page of the head of the National Bank Kyrylo Shevchenko.

Under the Stand-by program, Ukraine receives a second tranche from the IMF ($ 699 million) and de facto support from the International Monetary Fund for the actions of the Ukrainian government and the National Bank, including macroeconomic stability, financial system reform, and structural reforms.

The National Bank plans to:

  • strengthen the independence of the National Bank by further improving the corporate governance system;
  • pursue a monetary policy aimed at returning inflation to the 5% target;
  • adhere to the floating exchange rate regime;
  • to continue the gradual currency liberalization;
  • strengthen the capacity of banking prudential supervision to maintain a highly liquid and capitalized banking system.

“We will continue to work on reducing the level of non-performing loans in the banking system and state-owned banks, in particular, and implement initiatives to introduce new requirements for capital and liquidity of banks” – Shevchenko said.

The National Bank will also take an active part in the work aimed at recovering assets from the former owners and related parties of bankrupt banks. This is important to reduce the cost of bank failures to taxpayers.

Another important area of ​​work is strengthening the regulation of the non-banking financial sector.

“New legislation on financial services and financial companies (№5065), on credit unions (№5125) and on insurance (№5315) has already been prepared for this purpose. The first two bills have already passed the first reading in the Verkhovna Rada, the last one was supported in the second reading last week. We also plan to expand the coverage of the centralized credit register to non-bank financial institutions in accordance with the law on financial services” – Shevchenko said.

To remind, the IMF has completed the first revision of the Stand by (SBA) program and decided to allocate a second tranche of USD 699 million for Ukraine, as well as to extend the program until June 2022.

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