REUTERS
The European Union has been supporting Ukraine in the framework of a comprehensive program of financial sector reform implemented by the National Bank in Ukraine for the term up to 2020, considering opportunities to enhance assistance, the NBU press service reported referring to Ambassador of the EU delegation to Ukraine, Jan Tombinski as saying.
"The European Union hopes that the comprehensive program of financial sector reform until 2020 outlined by the National Bank of Ukraine with other Ukrainian authorities will continue on track in 2016,” said Tombinski, addressing the delegates of the third Ukraine Financial Forum hosted March 15 in Kyiv under the umbrella of the Vienna Initiative, utilizing the Initiative’s well-tested capacity to foster a regulatory environment conducive to bank stabilization in key countries.
“We are already giving technical assistance through a project that supports this program, and we are looking at the possibilities for enhancing assistance to Ukraine,” the official said adding that the Vienna Initiative is a perfect platform for discussing and addressing numerous challenges such as the high NPL level, related party lending and banking sector effectiveness.
“The banking sector needs confidence, and confidence requires information and trust,” said Tombinski. “The National Bank is on the right track."
Read alsoJaresko sees no significant factors for hryvnia fluctuationsIt is also noted that NBU Governor Valeria Gontareva said: “The NBU’s main mandate is price stability, that’s why we’ve committed to bring inflation down: our inflation goal for the end of 2016 is 12%, and we aim to bring inflation down to 5% within a horizon of three years.”
Read alsoUkrainian govt plans to liberalize forex market by late 2016“With regard to financial sector stability, Ukraine needs to develop mechanisms to resolve non-performing loans (NPLs) generated in 2008-2015,” said Gontareva. “To restart bank lending, Ukraine also needs creditor rights enforcement as well as implementation of judicial reforms. We are committed to continuing with financial sector reform. What we can also promise to the banking sector is that there will be a level playing field for all banks."