On 26 April 2012, an extraordinary session of the Council of the National Bank was held, at which Governor of the National Bank of Ukraine Sergiy Arbuzov emphasized that the monetary and prudential policies pursued by the National Bank of Ukraine were in line with the economic developments seen in the country.
In particular, Sergiy Arbuzov said that according to estimates made by the NBU experts, GDP growth stood at 2.5% in the first quarter of 2012. The Governor of the National Bank of Ukraine drew the Council members’ attention to the national currency exchange rate stability and a sharp fall in the rate of inflation (from the start of the current year - 0.7%), with twelve-month CPI inflation having declined to 1.9%, which could testify to the efficient fulfillment of the NBU’s functions defined in the laws.
“I would like to draw your attention to the fact that for the second month in a row, the international reserves have shown an upward trend, exceeding USD 31 billion as of today. Apart from that, interest rates on refinancing transactions have been cut three times since the start of 2012 – by 25 basis points each time. As of today, an interest rate on overnight credits against a collateral of government T-bills stands at 8.5%, whereas that on unsecured overnight credits stands at 10.5%. The discount rate stands at 7.5%”, said the Governor of the National Bank of Ukraine.
According to Sergiy Arbuzov, high level of banks’ liquidity is maintained, banks have resumed profitability and the bank capital shows a gradual upward trend. As of today, the registered authorized capital of banks amounts to UAH 174 billion.
“Stabilization loans are gradually being repaid. In the first quarter of 2012, the banks have repaid stabilization loans worth UAH 1.4 billion, including the early repayment of these loans in the amount of UAH 0.5 billion. Overall, the banking system of Ukraine demonstrates a smooth performance and public confidence in the banking system is increasing. This means that the monetary and prudential policies pursued by the National Bank of Ukraine are in conformity with the economic developments seen in the country,” concluded Governor of the National Bank of Ukraine Sergiy Arbuzov.