Council for financial stability calls for more efforts to receive third tranche from IMF

On October 30, a meeting of the Council for financial stability took place, chaired by NBU head Valeriya Gontareva. Participants of the meeting mentioned the stabilized macroeconomic situation including incremental production growth, slower inflation, improved balance of payments and stabilization in the banking sector. The Council welcomed the successful completion of the debt-restructuring deal for Ukrainian Eurobonds and stressed the importance of equal cooperation terms for all holders of the Ukrainian bonds including the Russian investors.

Members of the Council emphasized that cooperation with the IMF and compliance with the memorandum of understanding with the IMF are necessary pre-conditions for the financial stability in Ukraine and that all parties in charge for implementing the program of cooperation with the IMF must do their utmost to receive the third EFF tranche for Ukraine. Renewal of the scheduled cooperation with the IMF would also contribute to the build-up of the currency reserves of the National Bank of Ukraine.

Participants of the meeting also discussed the development of state-owned banks. Council Members unanimously demanded comprehensive changes in standards of corporate governance for state-owned banks as well as a review of the existing business models and strategic targets for them. Further support for the state-owned banks from the state budget must only go hand in hand with changes in their business philosophy. The Ministry of Finance is planning to finalize the development strategy for state-owned banks and present it to the public within next month.

The NSSMC outlined the steps made to fight the turnover of stocks with signs of being fictitious in the banking and insurance sectors. The Council members expressed their support for the first steps of the Commission and agreed to put together the efforts of the regulating bodies to completely stop the turnover of stocks with signs of being fictitious.