{"id":787651,"date":"2020-05-07T17:05:28","date_gmt":"2020-05-07T14:05:28","guid":{"rendered":""},"modified":"2020-05-07T18:45:32","modified_gmt":"2020-05-07T15:45:32","slug":"biznes-spilnota-ta-ekspertne-seredovyshhe-pidtrymuyut-zusyllya-nbu-v-protystoyanni-kryzi","status":"publish","type":"post","link":"https:\/\/new.eba.com.ua\/en\/biznes-spilnota-ta-ekspertne-seredovyshhe-pidtrymuyut-zusyllya-nbu-v-protystoyanni-kryzi\/","title":{"rendered":"Business community and experts support the NBU&#8217;s efforts to counter the crisis"},"content":{"rendered":"<p><span data-preserver-spaces=\"true\">Amid the global pandemic, turbulence, and unpredictability, the business community of Ukraine considers it necessary to thank the National Bank of Ukraine and emphasize the main strategic steps taken by the regulator to prevent destructive consequences for the country&#8217;s economy. Thus, in the first week of lockdown (long before the adoption of the first anti-crisis measures by the Verkhovna Rada), the NBU announced an extensive program of measures, including:<\/span><\/p>\n<ul>\n<li><strong><span data-preserver-spaces=\"true\">Operation of the banking system<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0&#8211; new programs were introduced to support banks with long-term financing, which can be directed to the economy to support the activity of businesses and citizens who suffer the most from lockdown.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Loans<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0&#8211; a special grace period was introduced to service the loans of individuals, small, medium, and large businesses during the lockdown period.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Deposits<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0&#8211; banks are prohibited from imposing any restrictions on the form and amount of deposit withdrawals at the end of their term. As a result, despite the current crisis, there was no massive outflow of deposits. The population trusts the banking system and the national currency &#8211; in April there was an increase in funds on hryvnia accounts of individuals.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Foreign exchange market<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0\u2013 with foreign exchange interventions, the regulator smoothed the fluctuations of the hryvnia, which make it possible to overcome the panic in the market. No currency restrictions were imposed on businesses, but their introduction could have deteriorated the situation, worsened the business climate, and provoked even more panic.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Payments<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0&#8211; tariffs for the e-payment system were abolished, as well as the fee for cash replenishments of the banks for the lockdown period.<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Security<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0&#8211; cash withdrawn from circulation is transported to the NBU vault for &#8220;quarantine&#8221; to disinfect the banknotes, while NBU replenishes banks with cash stored in its vaults before the spread of coronavirus in Ukraine.<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">As the future regulator of insurance companies, the NBU provided proposals to the National Commission for State Regulation of Financial Service Markets to ensure\u00a0<\/span><strong><span data-preserver-spaces=\"true\">uninterrupted remote operation<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0of insurers during the lockdown.<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">Stable low inflation ensures the predictability of the economy and the lack of pressure on real disposable incomes in times of emergency. So,\u00a0<\/span><strong><span data-preserver-spaces=\"true\">despite the current crisis,<\/span><\/strong><span data-preserver-spaces=\"true\">\u00a0<\/span><strong><span data-preserver-spaces=\"true\">inflation remains stable &#8211; the first important milestone<\/span><\/strong><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The NBU promptly transferred almost 43 billion UAH in the most difficult time (before the income tax is due by the business), providing almost half of the revenues to the general fund of the State Budget in April, which allowed increasing the general fund&#8217;s expenditures in April by 14% y\/y with a decrease in income by 13% y\/y.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">The volatility of the hryvnia since the introduction of the current monetary policy in 2016 is one of the lowest among the worlds\u2019 comparable currencies. At the same time, the NBU does not target the exchange rate, but only smooths fluctuations. The market itself corrects imbalances in the exchange rate, the regulator only smooths volatility.\u00a0<\/span><strong><span data-preserver-spaces=\"true\">Despite the current crisis, the exchange rate is stable &#8211; the second important milestone.<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">International reserves have a reliable and diversified structure with the volume close to 100% of the ARA standard set by the IMF. As there is no urgent need to replenish reserves, Ukraine needs to concentrate all funds on the state budget. The NBU is making this effort through negotiations with\u00a0<\/span><strong><span data-preserver-spaces=\"true\">the IMF, the World Bank, the European Commission, and other donors.<\/span><\/strong><\/p>\n<p><span data-preserver-spaces=\"true\">The banking system is well prepared for this crisis &#8211; several years of training and development of clear instructions did not let the market be vulnerable in this situation.\u00a0<\/span><strong><span data-preserver-spaces=\"true\">Despite the current crisis, the banking system is stable and liquid &#8211; the third important milestone.<\/span><\/strong><\/p>\n<p><strong><span data-preserver-spaces=\"true\">Therefore, the business community supports the NBU&#8217;s efforts to counter the crisis, because our common task is to find the way out of the current situation without destroying the economy and losing the image in the financial markets.<\/span><\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-264226 size-large\" src=\"https:\/\/new.eba.com.ua\/wp-content\/uploads\/2020\/05\/Business-Communities_07052020-1024x201.png\" alt=\"\" width=\"1024\" height=\"201\" srcset=\"https:\/\/new.eba.com.ua\/wp-content\/uploads\/2020\/05\/Business-Communities_07052020-1024x201.png 1024w, https:\/\/new.eba.com.ua\/wp-content\/uploads\/2020\/05\/Business-Communities_07052020-300x59.png 300w, https:\/\/new.eba.com.ua\/wp-content\/uploads\/2020\/05\/Business-Communities_07052020-768x151.png 768w, https:\/\/new.eba.com.ua\/wp-content\/uploads\/2020\/05\/Business-Communities_07052020-1536x302.png 1536w, https:\/\/new.eba.com.ua\/wp-content\/uploads\/2020\/05\/Business-Communities_07052020-650x128.png 650w, https:\/\/new.eba.com.ua\/wp-content\/uploads\/2020\/05\/Business-Communities_07052020-800x157.png 800w, https:\/\/new.eba.com.ua\/wp-content\/uploads\/2020\/05\/Business-Communities_07052020.png 1947w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amid the global pandemic, turbulence, and unpredictability, the business community of Ukraine considers it necessary to thank the National Bank of Ukraine and emphasize the main strategic steps taken by the regulator to prevent destructive consequences for the country&#8217;s economy. Thus, in the first week of lockdown (long before the adoption of the first anti-crisis [&hellip;]<\/p>\n","protected":false},"author":23406,"featured_media":264224,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[15573,15564,15563,15571],"tags":[],"class_list":["post-787651","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kyiv-en","category-lobbying-news-en","category-main-news-en","category-press-releases-en"],"_links":{"self":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts\/787651","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/users\/23406"}],"replies":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/comments?post=787651"}],"version-history":[{"count":0,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts\/787651\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/media\/264224"}],"wp:attachment":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/media?parent=787651"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/categories?post=787651"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/tags?post=787651"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}