14/10 17:30 EuroDebate on International Financial Market Turmoil

EBA Action on Financial Crisis

Reacting to the current economic situation in the country, on 14 October the European Business Association arranged an extraordinary off-the-record brainstorming EuroDebate. Over 80 business leaders convened to consider and outline methods to prevent serious damage to the Ukrainian economy. During the open and frank discussion between the EBA members, Petro Poroshenko, Head of the National Bank of Ukraine Supervisory Board emphasised that the current situation requires immediate and consolidated response on behalf of each and every state agency involved. He confirmed that state authorities are now working on a strategic action plan to mitigate negative economic effects to be considered at the upcoming meeting of the State Security and Defence Council this Friday.

Business representatives appreciated the strong reaction and recent activities of the national banking system regulator and raised a number of issues requiring immediate attention:

-          Besides short-term measures, it is urgent to develop and implement long-term strategic tasks;

-          At the moment the Ukrainian financial sector is not the one that undergoes the most serious damages in terms of the current economy, authorities and businesses should devote their special attention to the real economy;

-          It is a matter of urgency to consider diversifying Ukraine’s export potential;

-          Involving mass media, authorities should establish and maintain regular communication with business communities (analysing all the current problems apart from finance and banking issues) and the Ukrainian population;

-          The Government should support Euro-2012 preparation projects approaching their final stage;

-          Instead of securing essential fiscal load, it is more important to provide incentives to the construction and building sector with a special focus on social housing and infrastructure projects;

-          It is much better and more reasonable to spend 2008 budget savings, if available, on developing rather infrastructure projects;

-          Enhancing Ukraine’s image should have a positive influence on the country’s risk evaluation;     

-          It is vital to start harmonising an inflation estimation system with the international models;

-          Authorities should introduce effective procedure on providing out-of-court dispute settlement and improve the judicial system aiming to guarantee rights of depositors.

The EBA is extremely gratified to all guest speakers for their attending and participating in this pivotal EuroDebate as well as combining efforts to develop a proper approach to the current unstable situation.

Among our guest speakers were:

Please download EBA letter to high-rank officials.

Event partner

was held in Victoriya Hotel. Mr Ihor Sbitnev, the Chairman of the EBA Branch Board, greeted participants and wished them Happy New Year and Merry Christmas. He expressed hope that the next year would bring new opportunities and prospects for business development to the EBA members .