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 the 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 in its letter No. 10-013/181 of 9 November 2012 informed the Board of the National Bank of Ukraine (hereinafter referred to as the Board of the National Bank) that the Council of the National Bank reviewed an update on the status of the implementation of monetary policy in January-September 2012 and its effect on the social and economic development of the country at the meeting held on 8 November 2011. Based upon the consideration of the abovementioned issue, the Council of the National Bank of Ukraine has recommended the Board of the National Bank of Ukraine to:

• regard as acceptable, bearing in mind that the actual dynamics of the key macroeconomic indicators are different from the official projections, a possible downward deviation of the monetary base growth as compared with the official projections set out in the Monetary Policy Fundamentals for 2012 when regulating the amount of money supply in 4Q 2012;
• provide liquidity support to the banks involved in government securities sale operations with Naftogaz of Ukraine NJSC pursuant to Resolution of the Cabinet of Ministers of Ukraine No 794-p of 17.10.2012 Certain Aspects of Activity of Naftogaz of Ukraine National Joint-Stock Company by using existing monetary instruments and mechanisms (refinancing, repo operations, purchase and sale of government securities) in order to promote sustainability of the economic growth and second the economic policy of the Cabinet of Ministers of Ukraine by maintaining pre-approved price stability and monetary base growth indicators;
• initiate the establishment of the Clearing Center for Servicing of Agreements on Financial Markets (in accordance with the Law of Ukraine On Depositary System in Ukraine) on the basis of All-Ukrainian Securities Depository PrJSC to foster development of stock market and ensure trouble-free debt settlements using financial instruments.

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 by virtue of NBU Board Resolution No. 482 of 16 November 2012 “On Consideration of Recommendations submitted by the Council of the National Bank of Ukraine”.