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Arbuzov: Ukraine’s financial system stable despite political crisis

Posted by the Editor on January 30, 2014

News / 30 January 2014 | 11:38

Arbuzov: Ukraine's financial system stable despite political crisis

Arbuzov: Ukraine’s financial system stable despite political crisis

Acting Prime Minister Serhiy Arbuzov has said the financial and banking system of Ukraine is demonstrating a sufficient safety margin during the ongoing political crisis. He noted that this is a guarantee that economy is under control, Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
Experts agree with Arbuzov’s review of the banking sector status. As of the morning of Jan. 29, 2014, the National Bank of Ukraine had 24.5 billion UAH in its correspondent accounts. This indicates that they have sufficient liquidity to fully and timely meet their obligations to customers. Also, with a view to remove the excess liquidity, during January 2014, the NBU mobilized banks’ funds by issuing deposit certificates with a maturity of 6 to 30 days.
According to experts, all that indicates that the banking system is under full control of the NBU.
Experts also say that in the recent days, the central bank expanded its presence on the foreign exchange market. The NBU said they will continue to actively carry out operations on the interbank foreign exchange market, keeping the exchange rate situation under control.
Economic analysts emphasize that the banking system situation cannot be stabilized, unless the deep political crisis in the country is over. Under the circumstances, the demand for goods and services from both public and business entities goes down. This leads to shrinking business activities, which is followed by lower revenues, salaries, contributions to the budgets of all levels.
In addition, analysts say, the events of recent months take place in the context of the ongoing global economic crisis, and a resulting complex situation on the traditional Ukrainian exports markets.
On this basis, experts note that finding a way out of the political crisis is essential for recovery of economic growth and the key to the proper functioning of the economy.



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