REUTERS
The continuing and rapid decline in prices of Ukraine's major export-oriented commodities, trade restrictions imposed by Russia, a sharp weakening of the currencies of developing countries, as well as seasonal factors have resulted in a significant loss by Ukraine of export revenues, as well as increased turbulences on the forex market.
This is stated in the final communiqué presented by the Ukrainian Finance Ministry following a meeting of the Financial Stability Council presided by Ukrainian Prime Minister Arseniy Yatsenyuk.
The document highlights that strengthening of the above-mentioned factors poses major risks to the Ukrainian economy in the current year.
The external environment has become much less favorable for the country's economy and financial system in recent months, the document reads.
At the same time, members of the Council, including heads of the Finance Ministry, the National Bank, the National Securities and Stock Market Commission, as well as financial market experts stressed that amid a global economic downturn, a number of positive trends were observed in Ukraine, namely: restoration of banks' deposit base, retention of the budget deficit and GDP growth recorded for the first time after two years of decline.
The Financial Stability Council insists on further coordination of efforts by the NBU and the Finance Ministry in terms of maintaining the macroeconomic stability and the transition to inflation targeting.
It is noted that Ukraine has taken a principled stand regarding a prudent fiscal policy and reduction of fiscal risks for the country. In particular, last year Ukraine successfully fulfilled the budget targets, while this year Ukraine is set to continue pursuing a balanced budget policy. The budget deficit for 2016 is capped at 3.7%, to be financed by means of non-issuing sources, the Finance Ministry's press service quoted Finance Minister Natalie Jaresko as saying.
At this, the Council members underscored that one of the main conditions for ensuring the financial stability was to continue full cooperation with Ukraine's key creditors – the International Monetary Fund, the World Bank and other partners.
As UNIAN reported earlier, the meeting of the Financial Stability Council was announced by the prime minister. Key issues on the Council's agenda were the stabilization of the exchange rate and curbing of inflation in Ukraine. Yatsenyuk stressed that the government would focus on ensuring stable consumer prices and predictable foreign exchange rate.