REUTERS
Representatives of the Securities and Stock Market State Commission (SSMSC), the NBU and the Ministry of Finance have signed a memorandum of cooperation with the EBRD to develop capital market in Ukraine, the SSMSC Head Timur Khromaev wrote in Facebook.
"Yesterday, the SSMSC, the NBU, and the Finance Ministry signed a memorandum with the EBRD on capital market development in Ukraine," the official wrote.
As later reported by the press service of the NBU, the memorandum incorporates a renewed assessment of the needs of the Ukrainian capital market, steps for the development and improvement of clearing and depository infrastructure, new tools of the capital market as an alternative to the banking sector, an action plan to increase liquidity, and [steps to] help in building up effective controls and regulatory framework.
"The NBU welcomes the signing of the memorandum and the efforts of the EBRD aimed at supporting the development of capital markets in Ukraine. This is one of the top priorities for us in reforming the financial sector of the country, which is corroborated by the comprehensive program on developing the Ukrainian financial sector until 2020," wtote the press service citing the NBU deputy chairman Oleg Churiy, who signed the memorandum.
As reported earlier, Bank's Director for Ukraine Sevki Acuner previously stated that the Bank was ready to support Ukrainian financial sector.
UNIAN’s memo. The EBRD is the largest international financial investor in Ukraine. As of May 1, 2015 it had a total cumulative commitment of EUR 10.94 billion in 343 projects across the country.
The EBRD's Trade Facilitation Program promotes foreign trade to, from and within the EBRD countries of operations, including Ukraine. The TFP has supported trade transactions worth EUR 1.5 billion in Ukraine to date, of which over EUR 175 million has been processed in 2014 so far.
In 2010, the EBRD launched the Local Currency and Capital Markets Initiative aimed at stimulating local currency lending and promoting the development of local capital markets. The Initiative was intended to mobilize domestic funding sources, thus reducing reliance on foreign-currency lending and consequently mitigating foreign currency risks associated with it.
Within the framework of the Initiative, it was suggested that in order to anchor mutual intentions on strengthening the capital market in Ukraine to enter into the Memorandum of Understanding between the National Bank of Ukraine, the Ministry of Finance of Ukraine, the National Securities and Stock Market Commission and the European Bank for Reconstruction with regard to cooperation in the area of development of the Ukrainian local capital markets.