Financial Stability Board plans to adopt new Ukrainian financial sector strategy concept in June

MOSCOW. May 10 (Interfax) - The Financial Stability Board (FSB) at its regular meeting on May 4 finalized the concept of a new Financial Sector Development Strategy developed under the Memorandum on Economic and Financial Policies between Ukraine and the International Monetary Fund (IMF).

"The adoption of the strategy after elaborating all proposals is scheduled for June," the Ukrainian media quoted the Finance Ministry as saying in a statement on Wednesday.

The measures envisaged by the concept are oriented to two focal points in terms of planning timeframe, namely, the swift measures to stabilize and minimize the adverse effects of the crisis and the development involving changes in the financial sector to lay the foundations for post-crisis recovery and developing a new economy, the statement said.

"The main objectives of the updated strategy will be to ensure macroeconomic and financial stability, orientation of the financial system towards the country's recovery, modern financial services, and effective regulation of the financial sector," the Finance Ministry said.

Among the key elements of the strategy is the assessment of the sustainability of banks, which began in late April with the 20 largest banks, the ministry said. This assessment will define the ways to wrap up safely the emergency measures imposed in Ukraine in the first months of the crisis, and the priorities for the settlement of non-performing loans will be set.

The participants of the meeting also discussed the performance of the group on development of the domestic debt market, which identified the priorities of its work and held several meetings with the market participants, including with state banks and the subsidiaries of foreign banking groups a month after its establishment.

"The dynamic in the sector shows positive changes in the domestic debt market," the Finance Ministry said, without going into other details.

The Financial Stability Board was set up in March 2015 by a Ukrainian presidential decree and is a forum for professional discussion of systemic risks that threaten the financial stability of the state.