Restricting state-run enterprises in selecting only state-run banks not in line with IMF program

Restricting state-run enterprises in selecting banks for servicing only by state-run financial institutions is not in line with the program of the International Monetary Fund (IMF), First Deputy Economic Development and Trade Minister Yulia Kovaliv has said.

"In no way it is impossible to restrict the selection only with state-run banks, this does not meet the IMF program and the strategy to reform state-run banks," she wrote on her Facebook page.

She said that the Economic Development and Trade Ministry has drawn up criteria for its enterprises helping to avoid their losses if banks become bankrupt: the ministry is monitoring their introduction.

As reported, Ukraine's Cabinet of Ministers posted cabinet resolution No. 37 of January 20, 2016 which toughens the criteria for selecting banks authorized to pay salaries at state-rune enterprises, budget-funded organizations, pensions and social aid that was criticized by bankers for the creation of preferences to state-run banks.

According to the document, banks with state share of over 75% (Oschadbank, Ukreximbank and Ukrgasbank) are authorized to settle these payments on a regular basis.

Other banks are to buy government domestic loan bonds worth 20% of the regulatory capital and bring the issue of payment cards of the state multi-issue payment system to 10% of all cards issued by banks by 2017.