GMM with the National Bank of Ukraine membership
On September 20, EBA Southern Ukrainian office member companies met with the National Bank of Ukraine membership. NBU Deputy Chairmen, Oleh Churii and Roman Borysenko, told the participants about the main trends in the Ukrainian economy, expectations for the end of 2017 and macroeconomic forecast for 2018. The meeting was held within the framework of the Days of Financial Awareness – a joint three-day project organized by the NBU, USAID and Visa in the largest cities of Ukraine.
The speech of Roman Borysenko concerned renovation of bank credit. He stressed that the vast majority of banks has intention to increase credit portfolios of both the population and corporate clients, according to recent surveys of credit institutions. However, there are significant legal risks – insecurity of the rights of creditors, high level of not working credits and the absence of indebted borrowers. In particular, he outlined the state of crediting in the Odessa region. So, if this region accounts for 2.5% of all credits issued to legal entities in Ukraine in the first seven months of the year, then it will play a more significant role in attracting credits to the population – it will have 9.6% of the corresponding loans.
Oleh Churii, in his turn, dwelled on three topics – macroeconomic trends and forecast for the end of 2017-2018, the monetary policy of the National Bank and the liberalization of currency regulation. It was the last theme that caused the liveliest interest of the participants of the event. Answering questions of business, the speaker outlined how gradual exemption of administrative restrictions should take place after the adoption of the “Law on Currency”, in which cases new restrictions should be introduced, etc. At the same time, Oleh Churii stressed that now it was extremely important not to delay the reforms. “Today we have a favorable situation – inflation is declining, prices for Ukrainian export are high, the situation in the money market is largely stable, the State has access to international debt capital markets, and non-residents are interested in investing in the local government debt market. However, a paradox usually works in Ukraine – the better a situation, the worse is a prospect. Hopefully, this time it will not work, and Ukraine will continue to carry out the reforms needed to balance the economy. It is about pension and land reform, as well as reforms of state enterprises.”