The NBU holds sway over the monetary market

The meeting between Chair of the National Bank of Ukraine Stepan Kubiv and representatives of the European Commission was held on March 4, 2014, the press-office of the NBU announces.

The delegation of the European Commission was headed by Peter Bekx, Director of International Economic and Financial Affairs, and Global Management at the EC’s Directorate General for Financial Affairs.

The purpose of this meeting was to define top-priorities enabling Ukraine to receive a broadened financial support from the European Union, which in its turn can help stabilize the economic and financial situation in Ukraine. 

The parties discussed the estimated course of events in the macro-economic sphere and current situation in the domestic banking sector, as well as touched upon the issues of the monetary and currency policies.

During the meeting Stepan Kubiv informed of the commencement of talks with the International Monetary Fund regarding the assessment of the current economic situation with giving thorough consideration to the reforms that can lay the foundation for a joint program with the IMF.

It was mentioned that the situation in the banking sector, monetary and credit markets is being controlled by the National Bank of Ukraine, with key measures undertaken by the National Bank of Ukraine to stabilize the economy being highlighted.

The representatives of the European Commission said they stood ready “to explore and analyze the economic and financial situation on-site” and to define together with the Ukrainian party the need in urgent financial aid from the EC, which can be given to Ukraine within the frame work of a more ambitious program named Micro-Financial Aid Plus (besides the micro-financial support from the EC totaling 610 mln euros).

As regards further medium-term steps in providing the EC’s financial assistance to Ukraine, the necessity to renew lending to Ukraine by the IMF was stressed. 

The outcome of the meeting is the understanding reached on issues regarding further technical consultations and discussions to be held from March 4 – 6, 2014, during the stay of the European Union’s mission in Ukraine.