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NBU Expects Higher Gas Prices For Households For Receiving Next Tranche From IMF

The National Bank of Ukraine expects higher gas prices for the Ukrainian households for receiving the next tranche from the International Monetary Fund.

NBU Governor Yakiv Smolii said this during a meeting with bankers, Ukrainian News Agency reports.

On September 25, NBU Governor Smolii chaired a quarterly meeting of the Board of the National Bank with top managers of 40 largest Ukrainian banks.

The meeting addressed the questions of developments of the economic situation and the banking sector of the country, regulatory novelties of the Ukrainian central bank, and expected bills on financial sector in the fall of 2018.

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"Ukraine has entered the pre-election period, but, I emphasize, the National Bank remains outside politics, independent and aimed at execution of our mandate and further implementation of the reforms," he said.

Commenting on the outcomes of the IMF mission's visit to Kyiv, he said the dialogue was constructive in general.

"The negotiations continue. There are no questions for the National Bank. We are expecting required steps - increasing the gas prices to the market level and final regulation of certain questions of the state budget. We are optimistic," he said.

He says the banking system of Ukraine has performed the best in 2018 since 2014.

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In the first eight months of 2018, the net profit of solvent banks amounted to UAH 13.75 billion.

Banks continue to renew crediting, particularly retail crediting and corporate crediting.

He says the banking system is forming a new trend in the question of liquidity.

"We expect that the banking system will come to the deficit of liquidity next year. Therefore, it is worth thinking now about liquid security to have an opportunity to use the instruments of refinancing," he said.

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As Ukrainian News Agency earlier reported, in November 2018, the National Bank of Ukraine will publish the initial level of LCR (Liquidity coverage ratio).

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