A special meeting of the Council of the National Bank of Ukraine (the Council) took place on 5 April 2017. Its Agenda was mostly based on the Council’s Working Plan and measures scheduled for March. It took into account factors which existed in Ukraine during the first quarter of this year.
Bohdan Danylyshyn, Chairman of the NBU Council, opened the meeting saying: “The first part of our meeting will cover the main principles and tasks of macro-prudential oversight in Ukraine. It’s no wonder that the issue is on the table as macro-prudential policy is one of key instruments to ensure financial stability. Same as other central banks, the NBU has already started taking necessary action. And we notice a good progress here. At the same time, we think that the NBU must speed up development and implementation of the Macro-Prudential Policy.
Today we will also look at the portion of forecast distributable profit 2017 to be transferred to the State Budget of Ukraine in 2018. This our direct legislative duty.
In addition to that, today’s agenda also includes issues of consequences, possible risks and threats for the country’s financial stability invoked by ceased cargo transportation across the line of contact in Donetsk and Luhansk oblasts. We must assess the impact of the trade blockade of certain areas of Donetsk and Luhansk oblasts and its influence on the economy and monetary policy.”
Viktor Koziuk, the Council Member, and the National Bank of Ukraine reported to the Council on the main principles and objectives of macro-prudential regulation in Ukraine. Based on results of the discussion, the NBU Board was recommended to quicken the said work.
Also, a constructive discussion took place regarding approval of the portion of forecast distributable profit 2017 to be transferred to the State Budget of Ukraine in 2018. The Council heard information reported by the NBU and the Council’s Audit Committee. A final decision was made on the amount (UAH 47,824 million) which will be the basis for information submitted to the Verkhovna Rada and the Cabinet of Ministers of Ukraine.
In addition, NBU reported on the consequences, possible risks and threats for the country’s financial stability invoked by ceased cargo transportation across the line of contact in Donetsk and Luhansk oblasts. NBU informed on macroeconomic forecasts updated in view of the said events and measures which it plans to take in order to prevent negative consequences.
Based on results of the meeting, the Council issued Recommendations to the NBU Board an the Cabinet of Ministers of Ukraine.