Council for Financial Stability holds extraordinary meeting

On September 7, 2015, the Council for Financial Stability held an extraordinary meeting which was attended by Prime-Minister Arseniy Yazenyuk. The points on the agenda were the current hazards and risks for Ukraine related to global economic trends as well as the coordination of the steps being taken by state authorities to overcome them.

The Minister of Finance of Ukraine Nataliya Yaresko opened the meeting saying: «Ukraine is a country with a very open economy and is hence exposed to all what is going on in the world. The recent sharp fall of the global markets makes everyone review global trends and challenges confronting every nation including Ukraine».

The participants of the meeting discussed the new global economic and financial trends and outlined major steps meant to mitigate their possible negative impact for the financial and budgetary system of Ukraine.

The Minister of Finance emphasized that the active steps by the Government and the National Bank had helped to improve the financial capacities of the country.

"We do have positive trends in achieving our budget targets. In the first 8 months of the current year the revenues of the state budget were overperformed by UAH 24,6 bn. As per September 1 we have a record amount of almost UAH 46 bn on the state treasury account which makes it possible to cover all planned expenses and to make all social welfare payments. Apart from that, we have agreed a deal to restructure our state debt. Thanks to that we can substantially lower the pressure on our balance of payments and to improve stability on the currency market and in the banking branch", Nataliya Yaresko said.

Valeriya Gontareva, the Head of the National Bank, pointed out, that the core task of the Verkhovna Rada is to secure the financial stability of the country, also by coordinating the activities of the regulatory authorities. The coordination of the fiscal and monetary policy is also important as the National Bank is now switching to the mode of inflation targeting aimed to secure stable prices. Taking this into account, the participants discussed expected budgetary expenses till the end of 2015 and the key figures of the state budget for 2016.

The Head of the National Bank welcomed the reached debt-restructuring deal negotiated by the Ministry of Finance and reported positive changes including the stabilized situation on the currency market and the currency assets increased to USD 12,6 bn.

Prime-Minister Arseniy Yazenyuk stressed during the meeting that there are already first real signs available proving the stabilization of the national financial system.

«But we still have a long way to go. That’s why we are here now to discuss our further action plan to stabilize the financial system and to lay ground for economic growth», the Head of the Government said.

The Council for Financial Stability consists of the heads of financial regulatory bodies and serves as a forum for the professional discussion of key hazards affecting the financial stability of the country and solutions for their prevention. The co-chairmen of the Council are the Head of the National Bank and the Minister of Finance of Ukraine.

The meeting was also attended by the Head of the National Securities and Stock Market Commission Tymur Khromaev, the Head of the National Commission for State Regulation of Financial Services Ihor Pashko, the Managing Director of the Deposit Guarantee Fund Kostyantyn Vorushylin and other Council members.