"In spite of a difficult situation in the east of the country, Ukraine's economy proves to be sufficiently resilient to shocks. GDP is projected to increase by 1-2% in 2015 on account of a positive shift in the investment climate, gains in price competiveness and structural adjustments in the economy," said Governor of the National Bank of Ukraine Valeriia Gontareva in a live phone-in arranged as part of the “Ukraine’s European vector: impact on business” conference held in London.
In her speech, the Governor of the National Bank of Ukraine dwelled on steps taken by the country's central bank to improve the investment climate, including measures to enhance the predictability and effectiveness of the monetary policy.
The Governor of the National Bank of Ukraine said that the IMF mission was currently working in Ukraine, adding that the projections for future macroeconomic developments in Ukraine produced by the IMF experts were broadly in line with the NBU staff projections.
She also said that the National Bank of Ukraine was gradually moving toward an inflation-targeting framework. "However, a flexible exchange rate regime should not be confused with the genuine convertibility of the hryvnia that takes years to achieve, whereas a gradual transition towards an inflation targeting framework can be finalised within approximately 12 months," noted Valeriia Gontareva. She said that inflation targeting cannot be viewed in isolation from the smooth operation of capital markets in the country. In her opinion, it is the National Bank of Ukraine’s task to ensure the smooth functioning of capital markets.
According to her, the primary task of the National Bank of Ukraine is to restore confidence in the banking system and secure the banking system stability. Nowadays, it is important to consolidate the banking sector, with greater focus on the quality of management, high standards of corporate governance and transparency of the sources of funding for banks. The Governor of the National Bank believes that it would help boost the confidence of depositors and investors and foster sustainable economic growth in Ukraine.
For reference
The conference "Ukraine’s European Vector: Impact on Business" is held in London on 3-4 July. Political and economic reforms, new investment opportunities that emerged after Ukraine's presidential election, development prospects of the industrial, agrarian and financial sectors are high on the agenda at the conference. In addition, the conference will focus on Ukraine-EU relations and benefits that joining the European community will bring to Ukraine.
The conference has brought together representatives from over 50 hedge funds, private equity funds, large financial institutions, investment banks, British politicians, journalists and experts. Ukraine is represented by government officials and representatives from the business community.
Event organizer – Concorde Capital investment company.