Macrofinancial stability is a prerequisite for economic recovery and the successful implementation of the overall reform process in Ukraine. In her speech, Gontareva described the development of the Ukrainian financial sector since her appointment in 2014.
At that time Ukraine’s National Bank initially faced a highly unsustainable situation. Challenges included shady banks involved in money laundering and oligarchic deals, the country’s precarious current account, and the military conflict in Donbas – accompanied of course by macroeconomic consequences. Today, the Ukrainian banking sector appears to be in better shape. Reforms regarding monetary policy and the exchange rate, a cleanup of the banking system, and internal restructuring have led, Gontareva said, to macrofinancial stability, a reliable banking sector, and an effective National Bank now serves as a role model for other emerging markets today.
International institutions such as the IMF, the World Bank, and the European Union have played a crucial role in supporting the reforms Gontareva described. The results have to be put into perspective, however. The speaker made clear that the achievements in the banking system will only develop their full potential in combination with comprehensive reforms of other sectors.
The event was organized by the Robert Bosch Center for Central and Eastern Europe, Russia and Central Asia at the DGAP.
