National Bank of Ukraine adopts bank diagnostic survey concept needed for cooperation with IMF

MOSCOW. Feb 1 (Interfax) - The National Bank of Ukraine (NBU) reached another structural benchmark of cooperation with the International Monetary Fund (IMF) by adopting a concept of diagnostic surveys of banks and approaches to such surveys, NBU Governor Andrei Pyshny said.

"One structural benchmark under the Monitoring Program has been tagged as achieved by the NBU. We had until the end of January 2023 to set out technical terms of reference in consultations with IMF specialists to describe the methodology and procedures for conducting banks' diagnostic surveys, which are needed to assess the sufficiency of bank capital and determine priorities for handling non-performing loans. The relevant technical task [...] was agreed with the IMF and was endorsed by the NBU board on January 26, 2023. Thus, the structural benchmark has been reached," Pyshny said in an interview with Ukrainian journalists.

The program's main quantitative goals facing the NBU include ensuring the proper level of the international reserves and limiting the amount of monetary financing of the budget deficit, he said. These quantitative goals were accomplished as of late December.

"This year, the goal is the absence of monetary financing of the budget deficit and maintaining the international reserves at an appropriate level. We are engaged in a constructive dialogue with the government of Ukraine and are jointly making efforts to achieve these goals," Pyshny said.

Ukraine will be working with the IMF mission in February and March as part of the first review of the monitoring program and to work out a new program, which will provide financing, he said.