In accordance with Article 100 of the Constitution of Ukraine the Council of the National Bank of Ukraine (hereinafter referred to as the Council of the National Bank) exercises control over monetary policy implementation. Pursuant to item 3 of Article 9 of the Law of Ukraine “On the National Bank of Ukraine” the Council of the National Bank analyzes the effect of the monetary policy of Ukraine on the social and economic development of the country, develops proposals on amending this policy.

The Council of the National Bank of Ukraine in its letter No. 10-013/156 of 14 September 2012 informed the Board of the National Bank of Ukraine (hereinafter referred to as the Board of the National Bank) that the stance of the monetary in January-July 2012 and its effect on the social and economic development of the country was assessed at the meeting held on 5 September 2012. In this respect, the following recommendations have been submitted to the Board of the National Bank:

consider the possibility of extending the maturity of refinancing transactions up to 360 days in order to ensure the provision of liquidity support to banks in the context of limited access to external funding sources. Given the need to avoid risks to financial and monetary stability, it is deemed expedient to provide such support only to the banks that conscientiously fulfill all the NBU regulatory requirements;

encourage the banking system to support the implementation of priority economic development projects within the current legal and monetary policy framework in the event that these projects have been well-defined and approved by the government;

facilitate the efforts by the Government to allocate government securities designed for households.

The recommendations submitted by the Council of the National Bank are deemed relevant and reflect those aspects of the monetary policy implementation that require stronger efforts in the near future.

Having considered the recommendations submitted by the Council of the National Bank, the Board of the National Bank endorsed the Action Plan through the adoption of Resolution “On Consideration of Recommendations submitted by the Council of the National Bank of Ukraine” No. 391 of 21 September 2012. The Action Plan has been posted in the “Official information” section of the NBU’s official website.