PM Honcharuk and bankers discuss conditions for enhancing lending to real economy

Ukrainian Prime Minister Oleksiy Honcharuk said that during a business breakfast discussion with the heads of leading banking institutions organized by the Independent Association of the Banks of Ukraine, the Government portal reported.

“Last week, we signed a memorandum of cooperation with the NBU. The Government plans to create conditions for the National Bank, thereby allowing them to put things in order at the non-banking financial services market, which will protect banks from unfair competition. We are also planning to bring the legislation on the regulation of financial instruments and investment funds into line with EU directives,” Honcharuk said.

According to the prime minister, legislative initiatives will be aimed at improving the country's business climate, de-shadowing and liquidating corruption schemes.

Apart from that, they discussed issues of countering pressure by law enforcement agencies on business, including on banks, and the key role of reform of the judicial system to intensify lending and reduce bank lending rates.

During the meeting, the interlocutors emphasized that within two months of work the Parliament had already adopted a number of critical bills for the economy. In particular, bills on stimulating investment activity in Ukraine (No. 1059) and reducing the list of economic activities subject to licensing (No. 1050).

Moreover, a bill on the turnover of agricultural land submitted to the Parliament was among the topics for discussion. The prime minister and representatives of banks agreed to work together to launch lending for small and medium-sized businesses under the mortgage of land. Bankers stressed on the need to ensure equal access for all types of banks to state agrarian lending support programs.

Honcharuk stated that cooperation with international partners and donors was also important. “Large investors around the world are closely watching over our relationships with major international partners. We are in the active negotiation phase with the IMF for a new support program. Next week, a group of ministers is flying to the United States to attend the World Bank and IMF Annual Meetings and to negotiate with the Fund,” he noted.