The efforts of the National Bank of Ukraine to establish a healthy banking system started to bear fruit, but these measures need to be continued with the same diligence, according to the report released by the International Monetary Fund.
The report says the first phase of the recapitalization of banks has been successfully completed, and there is significant progress toward the liquidation of insolvent banks.
Among the steps to be taken by the regulator, the Fund noted the control over lending to related entities and disposal of impaired assets.
In addition, the IMF says it supports the NBU resolution on the gradual abolition of foreign exchange restrictions, which have been temporarily introduced to support balance of payments
As UNIAN reported earlier, in the process of the banking system clean-up, the National Bank of Ukraine in 2014-2015 found 63 banks insolvent. The financial institutions were transferred under the management of the Deposit Guarantee Fund. Since the beginning of this year, the NBU withdrew from the market another 15 financial institutions.
This year, the National Bank announced the easing of administrative restrictions on the foreign exchange market, established in 2014-2015 in order to stabilize the hryvnia. The limit for the issuance of currency cash in bank offices and ATMs at UAH 250,000 per customer per day is still enforced, as well as the limit for the purchase of foreign currency in cash by individuals to the equivalent of UAH 12,000 per day, and the mandatory sale of 65% of foreign exchange earnings by exporters, and a 120-day control of settlement of foreign trade contracts.
