IFC to help NBU with 'regulatory sandbox' and creation of companies to address non-performing loans

MOSCOW. Oct 29 (Interfax) - The International Finance Corporation (IFC) will help the National Bank of Ukraine to developing digital financial services ecosystems and creating a legal framework for creating companies to address non-performing loans.

Ukrainian media reported, quoting the NBU website, that two cooperation agreements were signed in Washington on October 25.

"The first agreement will drive financial sector innovation through open banking, enhancing financial inclusion and developing sustainable agent banking models. We will endeavor to encourage businesses to introduce innovative financial services using the NBU's regulatory sandbox," NBU Governor Andrei Pyshny was quoted as saying on social media.

He said the regulator expected to enhance competition in the banking sector and improve the supply of financial services to foster a cashless economy, and contribute to the Ukrainian financial sector's alignment with European standards.

"The second agreement addresses the issue of non-performing loans (NPLs). Our joint task is to create a legal framework for establishing asset resolution companies (ARCs) in Ukraine. These will play an important role not only for managing NPLs but also to attract private investment," Pyshny said.

The NBU said the Facility for Investment Climate Advisory Services (FIAS) would be the partner in the second agreement.