Vitaliy Romanchukevych, First Vice President of the Association of Ukrainian Banks, appeared on 1+1 TV to comment on the situation in the foreign exchange market, the importance of international financial support for Ukraine, the development of the government bond market, and the role of the banking system in financing the economy, the country’s reconstruction, and the defense-industrial complex.
The Foreign Exchange Market Has Adapted to New Conditions
According to Vitaliy Romanchukevych, the decline in demand for the dollar is not a sign of a crisis in the economy. The foreign exchange market is influenced by both external factors—such as the strengthening of the euro on global markets—and internal factors, such as growing demand for imports and components for Ukrainian manufacturing.
At the same time, the National Bank continues to ensure the stability of the foreign exchange market thanks to sufficient international reserves and a policy of managed exchange rate flexibility.
“There is no crisis. There is a certain degree of seasonality and adaptation to managed flexibility during wartime,” noted Vitaliy Romanchukevych.
Cooperation with the IMF Remains an Important Signal of Confidence
Vitaliy Romanchukevych emphasized that cooperation with the International Monetary Fund is one of the key factors in maintaining Ukraine’s financial stability and an important signal to international partners and investors.
“If we are working with the IMF, it sends a signal to all market participants that the country is a viable partner. That is why the program with the IMF is so important,” he stressed.
According to him, support from the European Union and other international partners also plays a significant role in the country’s macrofinancial stability.
Domestic Government Bonds Contribute to the Development of the Domestic Capital Market
Special attention was paid during the conversation to the development of the domestic government bond market.
According to Vitaliy Romanchukevych, an increasing number of Ukrainians are using domestic government bonds as a savings and investment tool. This allows the state to attract domestic resources to finance its needs and also contributes to the development of the capital market.
“This is very positive, as it is one of the first steps that can further develop both the domestic borrowing market and the stock market,” he noted.
According to the First Vice President of the Association of Ukrainian Banks, the growing interest in government securities is a positive trend for the development of the financial sector and the formation of long-term resources in the economy.
The defense industry needs access to financing
A separate segment of the discussion was devoted to the development of Ukraine’s defense-industrial complex.
According to Vitaliy Romanchukevych, defense industry enterprises are actively ramping up production, implementing new technologies, and need resources to scale up their operations.
“Today, one of the key areas of economic development is the defense-industrial complex. Ukrainian manufacturers are increasing production volumes, developing new technologies, and need financial resources to scale up their operations,” he noted.
At the same time, banks are ready to support such projects with loans, but financing opportunities directly depend on the level of capitalization of the banking system.
Bank Capital Determines Economic Growth Potential
Commenting on the initiative to extend the increased 50% corporate income tax rate for banks, Vitaliy Romanchukevych emphasized that the banking sector remains one of the largest taxpayers in Ukraine and, at the same time, provides the financial resources needed for economic development.
“Less than 3% of GDP accounts for about 11% of all state budget revenues. But the economy needs resources, and creating them requires a strong and well-capitalized banking system,” he noted.
According to the First Vice President of the Association of Ukrainian Banks (AUB), banks’ lending capacity directly depends on their capital levels. That is why decisions regarding additional tax burdens must be evaluated not only through the lens of budget revenues but also by considering their impact on economic development.
“By taking away revenue, we will not increase capital. And if capital does not increase, banks will not be able to issue more loans,” Vitaliy Romanchukevych emphasized.
He stressed that business development, the implementation of energy projects, infrastructure reconstruction, and the expansion of production capabilities for enterprises in the defense-industrial complex all depend on the availability of credit resources today.
European integration requires a strong financial sector
Vitaliy Romanchukevych specifically highlighted the need to further strengthen the Ukrainian banking system in the context of European integration.
According to him, the Ukrainian financial sector must increase its resilience and capitalization in order to be competitive in the European market and effectively support the country’s economy.
“I always want us to join the European community as partners,” concluded the first vice president of the Association of Ukrainian Banks.
In his view, a strong and well-capitalized banking system is one of the key prerequisites for economic growth, financing the country’s reconstruction, and implementing strategic development projects in Ukraine.
