Today the National Bank of Ukraine's senior management team has had a meeting with representatives of the World Bank mission to discuss the Second Financial Sector Development Policy Loan. The World Bank mission will stay in Ukraine till September 19, 2014.

The World Bank mission has started the preparatory work to contemplate a package of measures supported by the Second Financial Sector Development Policy Loan (hereinafter –  FSDPL2), which is scheduled to be disbursed in the first quarter of 2015.  

Governor of the National Bank of Ukraine Valeriia Gontareva thanked the World Bank mission team for their cooperation in developing Ukraine's financial sector that resulted in the disbursement of the First Development Policy Loan and stressed the importance of implementing all the measures envisaged under the FSDPL2 project.

In the course of the meeting, she informed the World Bank mission team about priority measures taken by the regulator to stabilize the banking system and the need to undertake structural adjustments when Ukraine is going through tough times.

The parties also discussed the preliminary findings of the diagnostic studies, recapitalization and restructuring plans of the 15 largest banks by assets, as well as the ongoing diagnostic studies of the 20 next largest banks.

 The possibilities of strengthening the operational, financial and regulatory capacity of the Deposit Guarantee Fund (hereinafter – the Fund) and the required amount of public funds to be allocated in 2015 budget to finance the Fund were also discussed at the meeting.

World Bank Mission chief Rinku Chandra expressed his hope that the World Bank mission team would have constructive and fruitful meetings with representatives from Ukraine's central bank. He noted that the mission team intended to discuss in detail the potential measures supported by the FSDPL2, including measures aimed at improving the credit information system and enhancing the legal framework to reduce the share of non-performing loans. It is also important to discuss plans to elaborate potential contingency measures by Ukrainian banks and the need for a more detailed definition of the systemically important bank.

On August 8, 2014, the World Bank disbursed a loan of USD 500 million to Ukraine under the FSDPL1 project to rehabilitate the banking system and improve its resilience to both domestic and external risks.