On March 6, 2014, Ms Olena Shcherbakova, Director of General Department of Monetary Policy of the National Bank of Ukraine, attended a round table on Current Threats and Challenges: Economy, Country’s Solvency and Banks.

During the event, Shcherbakova said that any tension - whether political, social or economic - is an adverse shock for the financial market. However, recent events only triggered the macroeconomic risks that have been looming on the horizon in recent years.

“The current situation, in spite of its complexity, is kept under control,”  she said. “At last, we can implement the long-need reforms and decisions”. The National Bank of Ukraine is taking all necessary steps to ensure the stability of the national currency and the banking system.

“The National Bank of Ukraine is enhancing its market presence and supports all banks, without exception,” said Shcherbakova. She also said that they were applying both traditional and new, developed recently, monetary instruments. In particular, banks received refinancing loans in the amount of UAH 22.3 billon in February and UAH 8.4 billion in January.

Besides, in February, the reserve requirements for banks were eased, which provided them with additional operational liquidity of over UAH 5 billion. Banks’ proper performance of their obligations would be a prerequisite to renewed calm and stability in the financial market.

The National Bank of Ukraine has limited its participation in the foreign exchange market because of the need to save reserves to settle the government’s obligations and pay for critical imports. Olena Shcherbakova stressed that all payments related to external debt have been made on time and in full.

“Currently, foreign exchange market transactions have reduced, an UAH appreciation trend has been seen for two days: households are adapting quickly, while businesses are adjusting to the new operational model,” said Olena Shcherbakova.