EU LAUNCHES PROJECT TO PROMOTE STABLE UKRAINIAN FINANCIAL SECTOR (18/03/2009)
The European Union and the Ukrainian Ministry of Finance launched yesterday the EU-funded Project “Strengthening of Ukrainian Financial Services Sector”.
The overall objective of the project is to assist the emergence of a reliable, transparent and stable financial sector, fit to finance Ukraine’s economic and social development. The total value of the project is €2.7 million
The last few months have been characterized by financial turmoil in world markets combined with internal political uncertainty. Recent events reinforce the need to take measures such as increasing capital, improving risk management and generally strengthening the supervision of all financial institutions. In the long-term the Ukrainian economy can only gain from developing a stronger, more broad-based and flexible financial system and a more effective regulatory system.
The Project will be implemented by the Consortium comprising: PLANET S.A. (Greece), Emerging Markets Group (EMG), Belgium, BME Bolsas y Mercados Espanoles SA, (Spain), and ATC Consultants GmbH, Austria. The beneficiary and the Project’s partners the Ministry of Finance of Ukraine and the recipients of are the National Bank of Ukraine; the State Commission for Regulation of Financial Services Market (SCRFSM); the State Commission for Securities and Stock Markets (SCSSM).
The project aims at enhancing the financial soundness of all financial services sectors (banks, non-bank financial institutions, stock markets) through a series of targeted measures and actions, i.e. by: coordinating and supporting the conclusion of a national strategy for the development of balanced financial services; ensuring that all financial market institutions satisfy sufficient capitalization requirements and improved risk management criteria; introducing efficient consumer and investor protection and compensation mechanisms; improving the policy making, regulatory and supervisory functions of relevant institutions and establishing improved governance structures; providing for enhanced transparency in ownership, market transactions; reporting and disclosure.
Among the Project’s expected results are: improved investment climate and enhanced trade; strengthened central banking and prudential regulatory, supervision and enforcement framework approximated to EU standards; enhanced capacity of all regulatory authorities in accordance with international norms and standards; systematic use of a regulatory feedback system; enhanced integration into European regulatory and supervisory networks; improved and efficient financial services infrastructures.
At the official launch of the project today, Deputy Minister Mr. A. Kravets said: “This is an important project for Ukraine’s financial sector, particularly at the present time. I thank the European Union for their support and look forward to working with the consultants to achieve the project’s objectives”.
Maryna Malik, tel.: (044) 425 14 43