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Arseniy Yatsenyuk calls on Parliament to convene an extraordinary meeting to stabilize the financial system. Prime Minister and Finance Minister left for President
25.02.2015 | 15:10
Information and Communication Department of the Secretariat of the CMU

Prime Minister of Ukraine Arseniy Yatsenyuk and Minister of Finance of Ukraine Natalia Jaresko are to immediately meet with President of Ukraine Petro Poroshenko. "So that the President invites the Chairwoman of the National Bank and so that we directly from the Chairwoman of the National Bank hear about the real picture, what measures are being undertaken and what should be done on the Government’s part to help the NBU stabilize the situation and restore confidence of Ukrainians to the banking system," the Prime Minister stated at a Cabinet’s meeting on Wednesday, 25 February.

"The National Bank of Ukraine alone, as it used to, with no consultations, made a decision to close the interbank foreign exchange market, which, indeed, gives no additional stability to the local currency, which the National Bank is responsible for," the Prime Minister highlighted.

Arseniy Yatsenyuk stressed that this situation of imbalance of both the financial system and the national currency "has a very complex and negative impact on the whole economy of the state."

He informed that today there were a range of meetings, "in order to find out what is happening in the interbank market, which is controlled by the National Bank, as well as trends."

Over the past nine months, according to the PM, the domestic financial market has sold US$51.5 billion: "It is almost the ten-fold amount in relation to the total volume of gold and foreign exchange reserves. This means that market is filled with dollars."

According to information from open sources, he emphasized, the total amount of purchase and sale of foreign currency, which are carried out by banks and supervised by the National Bank, is approximately from US$100 to 170 million.

"This means that the country possesses the currency. This means that part of currency was bought and is buying with the purpose of speculative transactions. With a view to buy at a lower rate and then sell at a higher," Arseniy Yatsenyuk stressed.

"We have repeatedly advised our colleagues from the National Bank to bring the situation under strict control in order to prevent from exporting currency under so-called import contracts, as if to purchase goods, and then these goods come neither within 30, nor 60, nor 90 days and foreign currency is being kept abroad to wait for a higher rate," he said.

For the Government such situation with the national currency, according to Arseniy Yatsenyuk, means "it affects the budget, the cost of food, the price of gasoline - the whole economy - and creates bad inflation expectations, as well as bad reality."

Arseniy Yatsenyuk appealed to members of the coalition to convene an extraordinary meeting of the Parliament "to adopt the necessary laws and consider the issue on the stabilization of the financial system."

He recalled that the Parliament had received a package of bills needed to get financial assistance of the International Monetary Fund, "part of which will go to the reserves of the country, fill the foreign exchange market, enable to bring down the panic and return to a balanced course."

"We consulted with all the factions of the coalition, except the largest one, and we’re anticipating these consultations concerning the adoption of the bills," he emphasized, noting that there were no significant differences between the Government and parliamentary factions during the consideration of these bills. "

Arseniy Yatsenyuk said that now he along with Finance Minister of Ukraine Natalia Jaresko will meet with the President of Ukraine "so that the President invites the Chairwoman of the National Bank and so that we can directly from the Chairwoman of the National Bank hear about the real picture, which measures are being undertaken and what should be done on the Government’s side to help the NBU stabilize the situation and restore confidence of Ukrainians to the banking system."

"Clear and understandable steps to make people stop withdrawing deposits, to decrease the current speculative hyperactivity, to make exporters return the currency that they are holding abroad, and to prevent importers from exporting foreign currency under bogus contracts waiting for a higher rate," the Prime Minister underlined.

 

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