Applied the approach “Vienna Initiative” to support the reforms in key sectors of the economy.
The Ukrainian authorities, representatives from commercial banks, international financial institutions and other parties concerned met in Kyiv on June 5, 2014, to discuss the progress made in the implementation of financial sector reforms.
The forum hosted by the National Bank of Ukraine provided a platform for a constructive dialogue between private and public sector in the main areas of focus of the Vienna Initiative, which was instrumental in securing financial stability in emerging market countries in Europe during the global economic crisis.
The meeting held in Kyiv brought together senior managers of the National Bank of Ukraine and government officials, representatives of the banking community, including commercial banks with local and foreign capital, representatives from the International Monetary Fund, the European Bank for Reconstruction and Development, the World Bank Group, the European Investment Bank, and the European Commission, as well as representatives from commercial banks incorporated in many countries. The representative of the European Central Bank participated as an observer in the forum.
Speaking at a briefing event held after the conference, Governor of the National Bank of Ukraine Stepan Kubiv said: “The forum that has brought together all the parties concerned provided us with the opportunity to identify the key challenges faced by this sector and suggest ways to address these challenges. The fruitful synergy between the private and public sector allowed us to determine the right direction in which we should move forward the reform agenda.
The conference participants discussed the progress made in implementing reforms supported by the Stand-By Arrangement with the IMF, and focused their attention on restructuring, recapitalization and ways to handle failed banks. They also debated the best way to tackle bad loans and doubtful loans, and discussed banking supervision reforms. The timely implementation of these reforms is needed to revive lending to the real sector of the economy in the future.
The opportunity to engage in constructive dialogue was welcomed by all the participants who emphasized the importance of holding regular consultations between institutions that formulate policy, regulators, banks and international financial institutions in an effort to devise and implement reform measures.
The representatives from international financial institutions unveiled what main steps within their areas of competence and expertise they could take to support the coordinated banking sector reforms.
The Ukrainian financial forum became the first event in a series of coordinated meetings that are set to be held on a regular basis in order to provide an opportunity to maintain a dialogue between the major parties concerned. The next Ukrainian financial forum is scheduled for autumn.