The National Bank of Ukraine announced that the Financial Stability Council (FSC) approved amendments to the Strategy of Ukrainian Financial Sector Development and the Lending Development Strategy, and endorsed a concept note to start developing a Mortgage Development Strategy, in the context of preparations for the eighth review under the International Monetary Fund’s Extended Fund Facility program. The revised financial sector strategy adds measures on legislative regulation of the Business Development Fund’s activities, development of a mortgage lending strategy, and strengthening the resilience of critical infrastructure and the financial sector’s digital operational resilience. It also updates measures on capital market infrastructure, including aligning a target operating model with stakeholders through steps such as consolidating accounting infrastructure and engaging foreign investors, and expands Goal 3 on recovery and EU integration by introducing a European Integration of the Financial Sector initiative covering cooperation with EU institutions, participation in negotiations, and implementation of the EU acquis in line with European Commission screening recommendations. Changes to the Lending Development Strategy aim to align it with the Ukraine Facility legislative roadmap, particularly regarding development and functioning of the nonperforming loans market and attracting foreign investment to that market. The FSC tasked its Financial Development Working Group (Committee) with preparing coordinated materials on the Mortgage Development Strategy for further discussion, including with IMF experts. The updated strategies and related documents will be published separately after formal approval.

Original source View in tracker