10:21 25.11.2016

NBU Council head: monetary and industrial policy should be shaped

2 min read
NBU Council head: monetary and industrial policy should be shaped

Ukraine should revise the liberal reform policy, step up government incentives and shape the monetary and industrial policy, Head of the Council of the National Bank of Ukraine (NBU) Bohdan Danylyshyn has said.

"The warnings of the public that only liberal reforms do not provide for quick recovery of the country, the increase in the number of jobs and economy growth are fair. The mixed economy system should be formed. This unites economic freedoms and government stimulation," he said at a meeting of the NBU Council in Kyiv on Thursday.

He said that this approach ensured economic growth in many countries, including Ukraine's neighbors.

"I would like to say that the new monetary and credit policy should be formed as a particular monetary and industrial policy that would help to restore our economy and ensure the [required] economic growth pace," he said. Danylyshyn headed the Economy Ministry of Ukraine in 2007-2010.

He said that one of the tasks of the NBU Council is to create sufficient conditions for supporting economic growth that was visible in Q2 and Q3 2016 by the banking system.

"The starting point of the economic growth policy is the increase of investment in core assets. Ukrainian business and the state should start it first," he said.

Danylyshyn added that efforts should be focused on the sectors with the largest potential for development. Motivations and institutional abilities of Ukrainian enterprises, including state-run corporations, to capital investment should be developed.

The central bank is obliged to join the economic pragmatism policy, he said.

The NBU Council intends to send draft key principles of the monetary and credit policy for 2017 and for the period until 2020 to the Verkhovna Rada.

Danylyshyn said that the NBU Council would do everything to restrict influence of various political risks on the banking system and provide for stability in the country.

"We are open for discussions and constructive dialog. We would do everything to protect the banking system from a split and negative impacts," he said.

He said that the council would hold meetings at least 10 times a year and analyze the NBU's monetary and credit policy and its influence on the country's social and economic development every quarter.

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