Financial Stability Council of Ukraine held a special meeting
A special meeting of the Financial Stability Council with participation of Ukraine's Prime Minister Arseniy Yatsenyuk took place on September 7, 2015. At the meeting, the Council members reviewed the issues related to the Ukrainian economy’s exposure to risks, current global economic developments and the coordination of efforts by the public authorities to overcome the challenges facing the country.
In her opening speech, Finance Minister Natalie Jaresko said: “Ukraine is an extremely open economy, which makes it vulnerable to global developments.” The recent steep fall in global stock markets has prompted the global community to rethink the global trends and challenges facing each country and Ukraine, in particular.
Therefore, the meeting participants discussed the latest global economic and financial developments and outlined the key steps to be taken to alleviate the potential adverse effects of these developments on the Ukrainian financial and fiscal systems.
At the same time, the Finance Minister pointed out that the financial capacity of our country has been strengthened through vigorous efforts by the Government and the National Bank. “In particular, good progress has been made in executing the state budget. In the first eight months of 2015, the budget revenues exceeded the target by UAH 24.6 billion. As of September 1, 2015, a record UAH 46 billion has accumulated on the single treasury account, enabling the Government to fund budget expenditures as planned and fulfil all its social commitments in full. In addition, we have reached a debt restructuring agreement with a creditor committee. This will help reduce pressure on the balance of payments and strengthen stability in the FX and banking market,” said Natalie Jaresko.
Valeria Gontareva underlined that the main task of the Council is to ensure the financial stability in the country, which could be achieved, among other things, through concerted efforts by the regulators. The coordination of monetary and fiscal policies is crucial for the transition to an inflation targeting regime, which aims at ensuring price stability. To this end, the meeting participants discussed the budget expenditures forecast for end-2015 and its key parameters for 2016.
The NBU Governor welcomed the restructuring of sovereign debt carried out by the Ministry of Finance and briefed the participants on positive developments, in particular, stabilization of the FX market and the growth of international reserves, which have reached USD 12.6 billion.
In the course of the meeting, the Prime Minister of Ukraine Arseniy Yatsenyuk pointed out that there are clear signs that stabilization of the country's financial system is taking hold. “Yet a lot needs to be done. Therefore, now we are going to discuss the further action plan to stabilize the financial system and set the stage for economic growth.
The Council comprises the heads of the financial market regulators and provides a forum for professional discussion of risks posing a threat to the country’s financial stability and possible ways to absorb these risks. The Minister of Finance of Ukraine Natalie Jaresko and Governor of the National Bank of Ukraine Valeria Gontareva serve as the Council's Co-Chairs (Ex-officio). The Committee's meeting was also attended by Head of the National Securities and Stock Market Commission Tymur Khromaiev, Head of the National Commission for the State Regulation of Financial Services Markets Ihor Pashko.