Project profile — Strengthening the National Bank of Ukraine

• Ukraine (100.00%)

• Banking And Financial Services: Monetary institutions (24020) (100.00%)

• Gender equality (significant objective)
• Environmental sustainability (cross-cutting) (not targeted)
• Participatory development and good governance (significant objective)
• Trade development (not targeted)
• Biodiversity (not targeted)
• Climate change mitigation (not targeted)
• Climate Change Adaptation (not targeted)
• Urban issues (not targeted)
• Desertification (not targeted)
• Children's issues (not targeted)
• Youth Issues (not targeted)
• Disability (not targeted)
• Indigenous Issues (not targeted)
• ICT as a tool for development (not targeted)

The goal of this initiative is to enhance the capacity of the National Bank of Ukraine to adopt a more flexible exchange rate and updated monetary framework, based on inflation targeting, and to identify and mitigate financial sector vulnerabilities. Such changes aim to support greater price stability, lower inflation and to place the economy in a better position to adjust to adverse external economic developments, all of which are essential pre-conditions for further small and medium-sized enterprise development in Ukraine.

N/A

Results achieved as of April 2016 include: (1) the National Bank of Ukraine (NBU) has acquired sufficient analytical capacity to develop and adopt policies that target fixed inflation rates which lead to greater price stability, benefitting consumers and businesses; (2) the project has contributed to the significant liberalization of the foreign exchange market by providing technical support to the NBU to adopt and implement policies regulating this area of activity; (3) the NBU has established a new organizational communications structure and is now working to improve the communications strategy to increase the public’s trust in its policies; (4) expert advice provided through the project was instrumental in navigating through the two recent banking crises as it helped the NBU to implement Ukraine’s agreements with the International Monetary Fund. The project continues to work on banking sector restructuring and financial stability reforms; (5) the NBU compliance with International Financial Reporting Standards has improved significantly in recent years. Commercial banks have also started implementing International Financial Reporting Standards.

• Proactive disclosure