Financial sector news

The National Bank of Ukraine has approved a new Lending Development Strategy that will help restore the country's economy under martial law. This was announced by the Governor of the National Bank of Ukraine, Andriy Pyshnyi. 

The NBU Governor noted that the implementation of the strategy will provide financial resources for the restoration of energy infrastructure and stimulate credit demand aimed at improving the country's defence capabilities. According to him, this will help expand business access to credit resources, develop entrepreneurship, attract investment in the economy, create new jobs, and return millions of Ukrainians from abroad.

"We need to provide financial resources as soon as possible to restore the energy infrastructure. This is the first thing. The second is to stimulate credit demand aimed at increasing the country's defence capability. It is about encouraging demand not only from defence companies, but also from the processing industry, agriculture and business in the de-occupied territories and those close to the frontline - the ‘territories of resilience’,’ Pyshnyi stressed.

The main tasks of implementing the Strategy are divided between the National Bank, the Ministry of Finance and the Ministry of Economy. In particular, the NBU will continue to maintain macrofinancial stability and regulate the sector, taking into account the balance between ensuring financial stability and credit development. The Ministry of Finance will stimulate the risk appetite of state-owned banks to lend to priority sectors, while the Ministry of Economy will improve the mechanisms of state programmes in the identified priority sectors of the economy and enterprises in the territories with high military risks.

"We have already started implementing the Strategy - the NBU Board has approved transitional requirements for banks to gradually introduce a new capital structure and capital adequacy requirements. Thanks to the balanced wording of the transitional provisions, taking into account the forecasts of the banks‘ performance indicators, we will be able to maintain financial stability and ensure a significant lending potential,’ said the NBU Governor.

Summing up, Andriy Pyshny said he hoped for further steps and decisions to reflect the priorities of this Strategy in the government's strategic guidelines for state-owned banks and key performance indicators.