The SUP Members met with the Governor and Board members of the National Bank of Ukraine

On April 8 the members of the Union of Ukrainian Entrepreneurs (SUP) had an online meeting with the Governor of the National Bank of Ukraine (NBU) Yakiv Smolii and all members of the NBU Board.

We publish the main topics of the conversation for you.

1.  Ukraine is confidently moving forward to cooperation with the IMF. A law on the land market has been adopted, the law on non-return of banks to ex-owners and changes to the budget will be adopted soon. This will allow to sign the memorandum and receive funding.
   In addition, the authorities are negotiating with the IMF on the so-called RFI program to support countries affected by coronavirus. All IMF funds will simultaneously be used to cover the budget deficit and replenish gold and currency reserves.
2. The National Bank forecasts a gradual weakening of quarantine measures in early May and a partial resumption of business activities.
3. The Ukrainian economy is much better prepared for the crisis than in 2014. If the situation does not prolong, the NBU members see no risk of default or recession.
4. No restrictions on cash flow, withdrawal of deposits, purchase and sale of currency, mandatory sale of currency, prohibition of payment of dividends abroad during the quarantine period will be imposed.
5. The NBU believes that the commission on non-cash payments should be reduced so they initiated negotiations with international payment systems (Visa, MasterCard) to reduce their value.
6. Deferred payments are already operating: interests are deferred, banks are undergoing restructuring, fines and penalties are not applied. Nowadays about ten banks have offered their clients “vacations”.
7. The state program “Available Credits 5-7-9” should become another tool for business support. At present the Government, the NBU and banks are improving the program to extend its operations to those businesses that already have existing loans.
8.  The NBU will not issue by primary or secondary market operations. Almost all countries use a combination of fiscal and monetary instruments to tackle the crisis. The Central Bank has introduced a refinancing mechanism for banks up to 5 years, a change of operational design (refinancing of loans per month rather than 2 weeks as before).
9. Banks will be able to use various remote verification methods that are currently being processed by the NBU and have already been addressed to the banking community.
   We thank the governor of the National Bank and all the board members for their constructive and frank conversation as well as their willingness to hear the needs of the business.
   Our business community is ready to continue this dialogue and to work together on important reforms!