30 Aug 2023 11:39

Inflation below 15%, cash, official exchange rate spread less than 5% among Ukraine's financial sector strategy goals

MOSCOW. Aug 30 (Interfax) - Indicators of the implementation of Ukraine's Financial Sector Development Strategy during the crisis in the short-term include the Consumer Price Index of less than 15% and retaining the spread between hryvnia-to-dollar cash and official exchange rates at less than 5%, Ukrainian media said, citing the strategy, which was published by the National Bank of Ukraine (NBU) on Tuesday.

Among the indicators is the NBU's resilience assessment including AQR and stress-testing of banks, insurance against military and political risks, and the registered draft legislation on implementing a comprehensive system of insolvent institutions' recovery, resolution and market withdrawal (the Bank Recovery and Resolution Directive of the European Union).

The other indicators of the strategy's implementation are the availability of new tools of non-performing loan resolution, ensuring the financial and institutional capacity of the National Securities and Stock Market Commission, the adoption of legislation on the virtual assets market, the introduction of legislative regulation of investment accounts, and bringing Ukraine's legal framework for rating agencies' operation in line with EU requirements.

As reported, the NBU, the Finance Ministry, the National Securities and Stock Market Commission, and the Deposit Guarantee Fund approved a new financial sector development strategy for Ukraine at a meeting on July 19, but postponed its publication until the end of August.

Short-term indicators have been provided to monitor the strategy's implementation. However, long-term indicators will not be set for now, as achieving the strategic goals depends on the creation of certain macroeconomic and other preconditions, because it is impossible to reliably forecast when they might become available.