The state of the financial sector of Ukraine today is almost the best since the country's independence, the National Bank of Ukraine said following a meeting of the Financial Stability Council on Tuesday.

"The existing risks to financial stability are insignificant," the central bank said in a press release.

The Council said that cautious optimism is emerging in the world and expectations for 2020 are improving. The Ukrainian economy is growing faster than predicted, and inflation has entered the target range.

At the same time, the National Bank said that the country recorded a decline in industrial production, which participants in the meeting of the Financial Stability Council mainly associate with unfavorable pricing conditions in some global commodity markets, in particular, with the pace of metal prices.

"The situation in the foreign exchange market remains favorable. The National Bank buys surpluses of foreign currency in the market to replenish forex reserves: from the beginning of the year, the net purchase of currency by the NBU has already exceeded $6 billion. A favorable macroeconomic situation, low inflation and strengthening of the hryvnia will help reduce the dollarization of the financial system," the NBU said.

Among the key issues discussed at the meeting was the restoration of solvency of the Deposit Guarantee Fund, the principal of the debt of which to the Ministry of Finance is UAH 49 billion. The members of the Council discussed possible ways to resolve the solvency of the Fund, and financial and legal assessment of several scenarios will be carried out in the first quarter of 2020.

"In the context of the issue of the operation of the Deposit Guarantee Fund, the idea of joining Oschadbank to the general system of guaranteeing deposits of individuals from the middle of 2020 was supported. The plan for the bank to become a member of the Fund will be developed additionally," the NBU said in the press release.

In addition, the Council discussed the risks of the construction financing funds, which is causing concern among market regulators in connection with the emergence of new information about the improper performance of their obligations.

"Council members agreed on the need for swift legislative changes to strengthen investor protection and greater transparency of the primary real estate market. Relevant proposals will be submitted to parliament," the NBU said.

The meeting participants also agreed on the creation of an interdepartmental Financial Development Committee, which will coordinate the implementation of the Development Strategy of the financial sector of Ukraine until 2025. In addition, the working group on the settlement of non-performing loans of state-owned banks was expanded: representatives of law enforcement agencies were included in it.