On Monday, January 23^rd, 2012 the Chamber Banking and Financial Services Committee held its regular Meeting devoted to a number of issues on the agenda:

 1.      Discussion of priorities and deliverables of the Chamber Banking and Financial Services Committee in 2012. 

Mr. Jacques Mounier, Credit Agricole Corporate and Investment Bank, Committee Co-Chair updated the participants about the approved priorities of the Chamber Banking and Financial Services Committee for 2012 that were presented at the last Chamber Board of Directors meeting:

• Continuous systematic involvement in ‘fire control’ type of actions when laws, resolutions and regulations have an impact that is considered to be detrimental to the financial industry and/or to the country;
• Financial sector tax issues / insurance sector focus;
• Implement IFRS (and not “Ukrainian” IFRS) in the financial sector (with an agreed transition period, starting with provisions at banks;
• Derivatives market development in Ukraine working on the draft law to be presented during H1 2012;
• Depository system in Ukraine: aiming at keeping it under a strict governance and profession owned;
• Ratings: development of such a rating culture and necessity;
• Payments systems and development of clearing settlements (cards related): participate/ amend the NBU driven project;
• Liquidity management at banks: Repos development, first; NBU liquidity gaps, second;
• Nonresident ownership modifications for banks;
• Development of the Stock market: ADR first?
• Consumer loans regulatory issues;
• Development of the usage of Swift for customers of banks’ international payments, first.

It was proposed to make Committee meetings more specialized ones and devoted to separate topics as well as invite participation of EBRD, World Bank and IMF representatives. 

Participants had an opportunity to provide their suggestions on what the Committee should be dealing with in 2012 as well as proposals for improvements in 2012:

• Reshaping the business model due to new requirements of the regulator, and new euro situation and sharing among colleagues how to better organize business;
• Dealing with NPLs;
• More topics on stock exchange issues;
• Currency and license issues;
• Inviting more government representatives to participate in the Committee meetings;
• Arranging narrow topics sessions for educational purposes. 

Mr. Robert Bond, USAID informed the Committee members about the two recently introduced draft laws.

The Draft Law “On Amendments to Certain Legislative Acts of Ukraine Regarding Creating the System of Protection of Financial Services Users on Financial Markets of Ukraine” seeks to clarify basic definitions and key provisions across the laws that pertain to consumers of financial services and aims to create the institutional framework for regulating entities and enforcing these laws.

According to Mr. Bond, the draft law contains both positive changes and disputable positions such as, for example, the status and authority of the Financial Ombudsman.

The Draft Law “On Consumer Lending” contributes to amending consumer lending and responsible borrowing.

USAID representatives welcomed the feedback to the draft laws and debate on how to improve them further.

 3.      Update on the recent Forum for Leading International Financial Institutions activities by Ms. Marina Zayvenko, Coordinator of the Forum for Leading International Financial Institutions.

Ms. Marina Zayvenko spoke of the following new Forum initiatives:

• Creating an effective benchmark on UAH market;
• Developing consumer finance market infrastructure and avoiding its excessive regulation;
• Focusing on close cooperation with NABU and IFIs.

She also updated the participants on the recent Forum Board of Directors meeting and the work of the following Forum WGs:

• Working Group on NPLs;
• Working Group on Creditors Rights Protection;
• Initiative: “How to Restart / Maintain Lending”;
• Working Group on Creating a single Credit Bureau in Ukraine;
• Working Group on Agricultural Lending;
• Working Group on Customer`s Identification;
• Initiative: “Legalization of Wages”.

 4.      Update on Euromoney Conference on CEE by Mr. Vladyslav Rashkovan, UniCredit Bank, Committee Co-Chair. 

Mr. Vladyslav Rashkovan, UniCredit Bank, Committee Co-Chair informed the participants of the Central and Eastern European Forum that was held on January 17^th-18^th, 2012 in Vienna.

The Forum consisted of three discussion panels attended by government ministers, central bank governors and experts. The remainder of the eleven editorially driven panels covered a variety of topics ranging from ‘The Future of CEE Banking’ to ‘Russia’. In addition to these sessions the conference offered sponsored workshops, interviews and country focused roundtables scattered throughout the conference proceedings.

 5.      Finalization of participation of funds in the capital of banks by Mr. Jacques Mounier, Credit Agricole Corporate and Investment Bank, Committee Co-Chair.

The participants discussed the issue of participation of funds in the capital of banks in Ukraine. This was completely forbidden earlier this year. The Chamber lobbied and asked for such possibility to exist. The NBU answered that it would consider funds to own altogether up to 10% in a bank.

The Committee participants will consider the relevant draft letter on behalf of the Chamber and, if supported, will submit its suggestions to the National Bank of Ukraine.

 6.      Update on what the Committee has been engaged in since the last Meeting on December 19, 2011 by Mr. Jacques Mounier, Credit Agricole Corporate and Investment Bank, Committee Co-Chair and Mr. Vladyslav Rashkovan, UniCredit Bank, Committee Co-Chair.

The participants were informed about the Chamber Banking and Financial Services activity over the period since the previous Committee meeting, including the Chamber letters that had been sent to the governmental institutions and other activities that the Chamber Committee was actively engaged in.

If you or one of your colleagues would like to participate in the Chamber Banking & Financial Services Committee Meetings and receive informational updates, please feel free to contact Valeria Tsyganenko, Chamber Policy Officer (Committees).

On Monday, December 19^th, 2011 the Chamber Banking and Financial Services Committee held its regular Meeting devoted to a number of issues on the agenda.

• Update on the proposed new stock market regulations by Mr. Dmytro Tarabakin, Dragon Capital.

Mr. Tarabakin informed the participants that according to his assessment, there will be no Ukrainian IPOs for the next five years. Under the existing environment over 90% of companies that are on a stock market do not represent open joint stock companies, but rather daughter companies / subsidiaries of holdings in Ukraine that have zero resemblance to what a public company should be.

Stocks that are traded are being bought by big business owners and they are usually worth not much. There are no investable assets; the only alternative might be created by the state, in the form of Eurobonds.   

According to Mr. Tarabakin, in this situation there is a strong need to adopt necessary legislative changes and the proposed alternative is to allow the companies that are listed abroad to go back list in Ukraine that will be only a short term solution. The available draft Regulation of the State Commission for Securities and Stock Market would allow and establish the process for letting companies currently listed mostly in Warsaw and London to get double listings in Ukraine as well.  

The NBU understands that they need additional investments, but it is also known that these introductions will create dollar demand which could be a sensitive issue. According to Mr. Tarabakin, there are minor other changes that could be introduced in the market regulations and do not need legislative amendments which will significantly improve the situation. 

The Committee will work on advocating for necessary changes in the stock market regulations.  

• Presentation on the issues of non-performing loans and proposals for relevant legislation improvement by Mr. Igor Chufarov, Ernst & Young.

Mr. Chufarov spoke about key tax and regulatory issues of non-performing loans. He updated the Committee Members on bad loans write-off in tax accounts which could be done following the NBU rules starting from April 2011.

Resolution #172 requires banks to continue efforts to collect bad loans after writing them off. The following might happen: no actions are taken by the bank to collect the debt and the period of limitation expires; the bank sells a loan to a third party without taking any actions to collect; the bank forgives the bad loan after the write-off in whole or in part; forgiven loan is treated as taxable income of the borrower for tax purposes; the borrower must include the forgiven amount into annual tax return and pay tax upon submission of the return; the bank must notify the borrower and the tax authorities about forgiveness.

Please click here to view the presentation (ENG).

• Update on the recent Forum for Leading International Financial Institutions activities by Ms. Marina Zayvenko, Coordinator of the Forum.

Ms. Marina Zayvenko updated the participants on the recently held Forum events and meetings:

• Meeting of the Working Group on Deposit Guarantee Fund – November 8^th;
• Ukrainian Banking Forum (Adam Smith Conference) -  November 16-17^th;
• First meeting of the Working Group on Identification – November 21^st;
• Forum General Meeting with the participation of IMF, World Bank and EBRD representatives – November 22^nd;
• IV International Private Banking Conference – November 23-24^th;
• Meeting of the Working Group on Creditors Rights Protection chaired by Mr. Engin Akcakoca, IMF Consultant on NBU related matters - December 7^th;
• Forum BOD elections – December 9-13^th;
• Forum Chairman Elections – December 14^th.

• Update on the Draft Law #9428-1 “On Depositary System of Ukraine” that was submitted to the Verkhovna Rada of Ukraine by People’s Deputy Serhii Teriokhin by Mr. Paul Roberti, USAID.

The Committee members were updated that on November 11^th, 2011 People Deputy Mr. Teriokhin registered the Draft Law No 9428-1 “On Depositary System” with the Verkhovna Rada. Draft Law #9428-1 is an alternative to the Draft Law No 9428 “On the Securities Depositary Record-Keeping System” submitted by the Cabinet of Ministers of Ukraine.

The Draft Law developed by CMU has wider scope of regulation than Draft Law #9428-1.  Therefore, the Scientific and Expert Legal Department Legal Department recommends rejecting Draft Law #9428-1, however certain ideas may be used during improvement of the principle CMU Draft Law, namely regarding status of the Central Securities Depositary (CSD) as non-commercial organization.

Both Draft Laws on depositary issues are scheduled for the first reading on December 22^nd, 2011. It is expected the Draft Law #9248 will be adopted in the first reading. Positive novelties of this Law are a lot of provisions on clearing, provision on the split of rights on ‘rights to securities’ (possession, use and disposal) and ‘rights under securities’ (shareholder meetings’ participation, voting, obtaining of dividends) etc. Negative provisions of this Draft Law include unlimited state ownership over Central Securities Depositary till Y2014 and absence of provisions on fair and transparent merger process of the two existing depositories: the AUSD and NDU. These shortcomings may cause to hands-on management of the all system of securities alienation in Ukraine.

• Update on the Decree signed by the President of Ukraine on November 23^rd, 2011 stipulating requirements on the National Commission for State Regulation of Financial Services Markets by Ms. Maria Chuchman, MetLife Alico.

Ms. Maria Chuchman informed the participants about administrative innovations of the new body, extension of authority and major introductions, particularly monitoring of the activities of non-state pension funds, administrators, insurers and banks involved, setting the procedure for selecting the insurers to participate in the saving system of the State Obligatory Pension Insurance, requirements for auditors of a non-state pension system participants, etc.

Please click here to view the presentation (ENG).

• Update on what the Committee has been engaged in since the last Meeting on November 21^st by Mr. Jacques Mounier, Credit Agricole Corporate and Investment Bank, Committee Co-Chair and Mr. Vladyslav Rashkovan, UniCredit Bank, Committee Co-Chair.

The participants were informed about the Chamber Banking and Financial Services activity over the period since the previous Committee meeting, including the Chamber letters that had been sent to the governmental institutions and other activities that the Chamber Committee was actively engaged in.

Please click here to view the minutes of the meeting.  

If you or one of your colleagues would like to participate in the Chamber Banking & Financial Services Committee Meetings and receive informational updates, please feel free to contact Valeria Tsyganenko, Chamber Policy Officer (Committees).

On Monday, November 22^nd, 2011 the Chamber Banking and Financial Services Committee held its regular Meeting devoted to a number of issues on the agenda.

Update on the recent developments in the financial sector of Ukraine by Mr. Max Alier, IMF Resident Representative in Ukraine.

Mr. Max Alier updated the participants on the results of the recent IMF mission visit to Ukraine and negotiations with the Government of Ukraine. He said that the IMF is in the middle of negotiations with Ukraine and currently the sides need to implement their policy agreements. In particular, IMF representatives are waiting for the completion of the gas deal with Russia and the increase in gas prices for population, as well as for the draft 2012 budget.

Speaking of the banking sector Mr. Alier noted that the IMF raised with the NBU an issue concerning the big number of court cases relating to the banking sector and noted that the issue needs to be pressed upon and explained to the NBU as well as the government.

He also spoke of the liquidity problems and recapitalization of banks.         

Update on the recent Forum for Leading International Financial Institutions activities by Ms. Elena Yagych, Assistant of the Forum for Leading International Financial Institutions.

Ms. Elena Yagych updated the participants on the participation of the Forum leadership in the Adam Smith Ukrainian Banking Forum on November 15-17, as well as other Working Groups` activities of the Forum.

The Forum will continue working together with the Chamber as well as IFIs on developing amendments to the adopted Law “On Relations between Creditors and Consumers of Financial Services”. 

Update on the Law of Ukraine on "Relations between Creditors and Consumers of Financial Services" #3795-VI dated October 22, 2011 by Mr. Oleksii Lukash, Pravex-Bank, PJSCCB.

Mr. Oleksii Lukash noted that on the positive side the Law includes a clarification that private entrepreneurs cannot be subject to bankruptcy under monetary obligations which have arisen directly from an individual activity unrelated to the private entrepreneurship activity. Thus, such clarification prevents misuse of this law by unscrupulous debtors and misuse of the law by debt collection (legal) companies to avoid liability under consumer credit agreements.

At the same time, the composition (structure) of competitive creditors remains somewhat controversial. Creditors whose claims are secured fall within the category of competitive creditors (lenders). However, it remains an open question providing claims in the event of bankruptcy of the guarantor, and not the debtor, as far as guarantor doesn’t have direct financial obligation towards the bank, but through the pledge, he ensures the execution of the monetary claim.

The requirement of the financial institutions to provide them the right to sell the subject of the mortgage on behalf of collateral provider, and not on its own behalf, is still overlooked. Thus, the mortgage holder, not being the owner of the subject of mortgage, is still not able to effectively provide collection by means of out of court procedure.   

Update on recent legislative initiatives relating to the cards market in Ukraine by Mr. Sergiy Ravnyago, MasterCard.

Mr. Sergiy Ravnyago highlighted the recent developments with the Draft Law “On Amending Certain Legislative Acts of Ukraine regarding Functioning of Payment Systems and Development of Noncash Settlements” which is still undergoing approval process within the NBU and had not yet been registered in the Verkhovna Rada of Ukraine.

Mr. Ravnyago mentioned that the Chamber proposals were not taken into account and the NBU did not provide any explanations.

The Committee will continue closely following the situation with the Draft Law and, if necessary, work with the Verkhovna Rada Committees on advocating for necessary changes.    

Update on the Committee work on the issue of investment funds not being allowed to be the shareholders in Ukrainian banks by Mr. Grygorii Ovcharenko, OTP Capital.

Mr. Ovcharenko updated the participants on the Chamber Banking Committee letter regarding the new legislative provision stating that investment funds are not allowed to be shareholders in Ukrainian banks and the following NBU response on the matter:

• As agreed between Ukraine, IMF and WB, Ukraine has to make sure that the ownership structure of banks is transparent, and ultimate beneficiaries of the banks are identified and known to the market;
• It is not possible to identify the owners, as well as the origin of money invested by investment funds;
• However, NBU is considering the possibility to let investment funds to buy shares in banks, provided that total share of all investment funds in one bank does not exceed 10%.

The proposal that is supported by the participants is to limit participation of one fund in the capital of one bank to the substantial participation (i.e. 10%) what was stipulated in the new Draft of the Law on collective investments and can be identified in a response to NBU as an appropriate solution.

The Draft Chamber Letter will be prepared and distributed among the Committee members. 

Update on what the Committee has been engaged in since the last Meeting on October 17 by Mr. Jacques Mounier, Credit Agricole Corporate and Investment Bank, Committee Co-Chair.

The participants were informed about the Chamber Banking and Financial Services activity over the period since the previous Committee meeting, including the Chamber letters that had been sent to the governmental institutions and other activities that the Chamber Committee was actively engaged in.

If you or one of your colleagues would like to participate in the Chamber Banking and Financial Services Committee Meetings and receive informational updates, please feel free to contact Valeria Tsyganenko, Chamber Policy Officer (Committees).

On Monday, October 17^th, 2011 the Chamber Banking and Financial Services Committee held its regular Meeting devoted to a number of issues on the agenda:

 1. Update on the information on corporate income tax computations features proposed to the insurance sector from 2012 on by Mr. Bjorn Marlier, AXA Ukraine.

 Mr. Bjorn Marlier, AXA Ukraine, briefed the Committee members on the changes in tax laws for insurance companies due to new Tax Code which come into force on January 1^st, 2012.

 Mr. Bjorn Marlier noted that according to previous laws, insurance sector was being taxed based on revenue with 3% tax on insurance activities and 25% for other activities (mainly financial). According to the new Tax Code, insurance companies will be taxed based on profit with 21% in 2012, 19% in 2013, and 16% in 2014.

 It was also mentioned that previous tax calculation procedure had a consistent and simple structure; however, it was incompatible with accounting standards. According to the new taxation procedure there is no need for dual management; however, there is a risk that difficulties and inconsistencies may emerge in these rules application by tax authorities.

 Please click here to view the presentation.    

 2. Situation on the cards market in Ukraine by Mr. Sergey Koptik, Visa Inc.

 Mr. Sergey Koptik, Consumer Products CIS&SEE Director, briefed the Committee members on Visa’s role as a payments network, and Visa’s priorities in Ukraine. Mr. Sergey Koptik underlined that a share of payment volume by cards in total volume of payment in Ukraine is only 6.8 %, while in Western Europe it is 47-55 %, and 25-27 % in such countries as Croatia and Serbia. Cardholders in Ukraine use salary cards mostly for cash withdrawal and payments in big food stores, and very rarely for utility payments, money transfers, Internet payments and when traveling in other cities/countries.

 There are multiple consumer barriers to card usage: inclination to use cash; consumers see no benefit in card over cash, fear to lose control; fear of fraud. Mr. Sergey Koptik emphasized that the key challenge in the segment is that issuers are not investing into usage activation and cardholder education; generally cardholders barely know about all the potential of their salary cards. The solution is active informing of cardholder at workplace. As an example, Mr. Koptik mentioned educational seminars delivered by Visa-certified trainers for cardholders.

 Please click here to view the presentation.

 3. Update on the Resolution of the National Bank of Ukraine #278 dated August 11^th “On the Approval of Changes to the Instruction on Procedure of Organizing and Carrying Out Currency Exchange Transaction in Ukraine” by Mr. Mykhailo Shomin, SEB Bank.

Mr. Mykhailo Shomin kindly shared with all the participants the explanatory letter from the National Bank of Ukraine on the Resolution of the National Bank of Ukraine dated 21^st and 28^th of September.

 According to the National Bank of Ukraine explanation letter dated 21^st of September, a customer has to provide bank with passport or the similar document if a transaction is over 50 thousand hryvnias and with any other document that give the possibility to identify the person if a transaction is less than 50 thousand hryvnias or equivalent. According to the National Bank of Ukraine explanation letter dated 28^th of September, only passport or similar document is used to identify the person irrespective the volume of the transaction. Mr. Shomin also noted that according to recent announcement of Mr. Arbuzov, Head of the National Bank of Ukraine, it is allowed to buy currency from physical person if any identification document is provided.

 4. Analysis of the current liquidity situation in Ukrainian banking sector by Mr. Vladyslav Rashkovan, UniCredit Bank, Committee Co-Chair.

 Mr. Vladyslav Rashkovan kindly shared with all the participants some figures on current macroeconomic situation in Ukraine. It was noted that inflation pace slowed to 5.9%. Current account deficit grew to $1 billion in August, while compensated by $939 million foreign direct investment. Foreign exchange reserves dropped to $35.0 billion level in September (from $38.2 in August) or by 8.5% because of significant USD demand from householders. As a result, the NBU FX interventions (net) totaled at near $2 billion to support cash market. Mr. Rashkovan also emphasized that the gap between the official interest rate of the Central bank and interbank interest rate starts widening. Overnight interbank interest rate keeps high (of loans given by the Bank) at 12-16%.

 5. Update on the situation with government auctions and primary market, and introduction of currency linked bonds by the GoU and Euro-markets by Mr. Paul Roberti, USAID Financial Sector Development Project.

 Mr. Roberti pointed out that since the beginning of the second half of 2011, there had been a halt in the issuance of standard government securities denominated in local currencies, OVDP. On October 4^th the Ministry of Finance introduced a new instrument, USD linked security which was snapped up by the market that has not seen a successful primary issuance for four months. Over October 4-14, three maturities of currency linked bonds were placed to the tune of UAH 4.7 billion at rates 8.22% (3-year), 8.75% (5-year) and 9.25% (10-year) which is approximately 100-300 basis points lower than the yields of corresponding sovereign Eurobonds.

 Mr. Roberti stressed that the issuance of USD-linked bonds seems to have been initiated not by the Ministry of Finance but by the NBU which has always focused on managing the exchange rate, not inflation targeting as recommended by the IMF and most economists. What is more, the concept of an inflation-linked instrument requires a proven index - one that investors are confident will not be manipulated by the government.

 6. Update on what the Committee has been engaged in since the last Meeting on September 19 by Mr. Jacques Mounier, Credit Agricole Corporate and Investment Bank, Committee Co-Chair and Mr. Vladyslav Rashkovan, UniCredit Bank, Committee Co-Chair.

 The participants were informed about the Chamber Banking and Financial Services Committee activity over the period since the previous meeting, including the Chamber letters that had been sent to the governmental institutions, and other activities that the Chamber Committee was actively engaged in.

 If you or one of your colleagues would like to participate in the Chamber Banking & Financial Services Committee Meetings and receive informational updates, please feel free to contact Valeria Tsyganenko, Chamber Policy Officer (Committees). 

On Monday, September 19^th, 2011 Chamber Banking and Financial Services Committee held its regular Meeting that was devoted to a number of questions, notably the latest developments in the banking and financial services legislation, as well as the latest events held by the Chamber and the Forum for Leading International Financial Institutions (FLIFI), etc.  

Mr. Sergiy Ravnyago, MasterCard Europe Sprl updated the participants on the Draft Law “On Amendments to Certain Legislative Acts of Ukraine regarding Functioning of Payment Systems and Development of Clearing Settlements” published on August 17 on the official website of the NBU for the purposes of its public discussion. The draft law suggests that the NBU Law and the Payment Systems Law shall be amended to include the new authority of the NBU to carry out oversight of the payment systems operational in Ukraine, and apply various sanctions for non-compliance with the requirements of the applicable legislation. Given that the contemplated “initiation of changes” by the NBU during oversight of the activity of the payment systems is not a defined concept in the Draft Law, it may be regarded as an interference into the activity of payment systems. 

After the discussion the Committee Members resolved to formulate the Chamber position on the issue and present it to the National Bank of Ukraine before the deadline for submitting comments, i.e. September 30. 

We would like to encourage all representatives of the banking community to get engaged into the work on amending this important piece of legislation. Please feel free to contact Valeria Tsyganenko, Chamber Policy Officer (Committees) for more information. 

Ms. Elena Iagich, Assistant of the Forum for Leading International Financial Institutions, briefed the participants on the recent activities of FLIFI, particularly the established new Forum Working Group on frivolous court cases impacting loan portfolios, which banking system has to face, under the leadership of Mr. Dmitry Zinkov, CEO of OTP Bank, member of the Forum BOD, with the following objectives: 

Practical:

• Exchange of information on negative cases;
• Development of defense methods;
• Exchange of useful contacts; 

Strategic:

• Influencing the judicial system through the Presidential Administration or other state officials;
• Strengthening liability for legal executives by means of legislative changes 

Ms. Iagich also informed the participants of the press conference organized by FLIFI on September 20 on the latest trends in the banking sector and prospects for the second half of 2011 – 2012. 

Mr. Olexiy Soshenko, Clifford Chance LLC briefed the Committee members on the Chamber involvement in the abolishment of the requirement for Ukrainian entities to obtain an NBU license to make cross-border payments to non-resident creditors under suretyships securing loans granted to Ukrainian borrowers. 

While discussing other issues requiring further Chamber lobbying, the participants agreed to draft a Chamber position solving the issue with the right of non-banking financial institutions to purchase foreign currency when and if they would have to pay under a security or a guarantee agreement.      

Mr. Jacques Mounier, President of the Management Board, Credit Agricole CIB, Responsible Board Member and Co-Chair of the Chamber Banking and Financial Services Committee, reminded the participants about the Committee work on the development of a life insurance services market and the letter sent to the Cabinet of Ministers of Ukraine with a request to include payments arising out of the long term life insurance contract into the list of payments conducted by an employer that are not subject to a single contribution for obligatory state social insurance. 

The participants noted that since the response from the Ministry of Social Policy of Ukraine contained the information that the Ministry will contact the Ministry of Finance and the State Committee on Statistics. The Chamber will work with these government authorities as well advocate for the inclusion of these payments. 

Speaking about the Policy Progress in the Chamber Banking and Financial Services Committee activities regarding the response to the Chamber Letter on the Draft Law #8576 “On Derivatives”, Mr. Jacques Mounier emphasized that the National Bank of Ukraine voiced its support of the Chamber position on the draft law, the Committee will be now working with the Parliament Banking Committee to advocate for the adoption of the piece of legislation harmonized with the international best practices. 

Mr. Robert Bond, Chief of Party, USAID Financial Sector Development Project, informed the Committee on the issue that International Monetary Fund has agreed to send an expert to work with the Ukrainian Government on drafting a new Law on Derivatives, since the parties have come to a general agreement that existing draft laws do not correspond to the international best practices requirements.     

Mr. Robert Bond also briefed the participants that the submitted to the Presidential Administration draft law on depository issues does not contain the amendments that the international donor community advocated for. 

Mr. Vasyl Rogovy, AUSD Supervisory Board Head updated the participants on the upcoming AUSD general shareholders` meeting and the issues on the agenda – elections, amendments to the charter, as well as issues of additional emission. Mr. Rogovy called on the participants whose banks are AUSD shareholders to support the transparent and legal procedures of AUSD elections.  The participants stressed that the Committee and international donor community need to find the means to support all AUSD procedures in a transparent and coordinated way. 

Mr. Jacques Mounier updated the Committee members on the activities the Committee is currently focusing on and Chamber “Partnership for Successfully Competing in the Global Economy” part of the Banking & Financial Services report which was prepared by the Committee leadership for the Chamber Board of Directors meeting. The Committee decided to institutionalize its activities and establish regular liaison with other banking associations in order to share the Committee advocacy activities with them. 

The attendees were also informed about the Chamber Banking and Financial Services activity over the period since the previous Committee meeting, including the Chamber letters that had been sent to the governmental institutions. It was agreed to hold the next Committee meeting on October 17, 2011 at 5:30 PM.

Please click here to view the Minutes of the Meeting. 

If you or one of your colleagues would like to participate in the Chamber Banking & Financial Services Committee Meetings and receive informational updates, please feel free to contact Valeria Tsyganenko, Chamber Policy Officer (Committees).

The agenda of the Meeting was devoted to the following issues: 

1. The Order of bringing the activities of collective investment institutions in accordance with the Law of Ukraine "On Banks and Banking Activity". Influence and minimization of the consequences of implementation of the amendments to Article 14 of the Law of Ukraine "On Banks and Banking Activity, made by the Law of Ukraine # 3024 – VI of 15.02.2011 that foresees the prohibition for the collective investment institutions to be the participants of banks by Mr. Grygorii Ovcharenko, Chief Executive Officer, OTP Capital;
2. Update on the requirements of banks to independent evaluation by Mr. Pavlo Matiyash, Executive director of UNIA;
3. Update on the depositary issues by Mr. Robert Bond, Mr. Paul Roberti, and Mr. Victor Stetsenko, USAID Financial Sector Development Project;
4. Update on the draft law “On Amendments to Certain Legislative Acts of Ukraine concerning Regulation of Relations between Creditors and Consumers of Financial Services” that was vetoed by the President on August 1st, by Mr. Vladyslav Rashkovan, Co-Chair of the Chamber Banking and Financial Services Committee, UniCredit Bank;
5. Update on the draft Law on Amendments to the Law of Ukraine “On Banks and Banking” (regarding prohibition of the commission when withdrawing money through ATM) by Mr. Vladyslav Rashkovan;
6. Update on the Automatic Teller Machine business related issues by representatives of Visa International Representative Office in Kyiv;
7. Update on the draft NBU Regulations “On Banks Registration and Licensing, Opening of Separate Units”, “On Submission of Information about Ownership Structure”, “On Approval of Amendments to Some Legislative Acts of the National Bank of Ukraine” (namely to the NBU Regulations # 368 of 28.08.2001 and #279 of 06.07.2000), “On Amendments to the Instruction on Banking Regulation in Ukraine”, and “On Currency Regulation and Currency Control”, as well as on the recently adopted Law of Ukraine # 3609-VI “On Amendments to the Tax Code of Ukraine and Other Legislative Acts of Ukraine concerning Improvement of Certain Norms of the Tax Code of Ukraine” by Mr. Jacques Mounier, Co-Chair of the Chamber Banking and Financial Services Committee, Corporate and Investment Bank Credit Agricole;
8. Update on the recent Forum for Leading International Financial Institutions and Chamber Banking and Financial Services Committee activities by Ms. Marina Zayvenko, Coordinator of the Forum for Leading International Financial Institutions, including the life insurance issues and results of the Working Group on Repos activities by Mr. Jacques Mounier, and draft Law “On Sanation Bank” by Mr. Vladyslav Rashkovan.

Next Chamber Banking and Financial Services Committee Meeting is scheduled for Monday, September 19^th, 5:30PM.

Please click here to download Minutes of the Meeting.

If you or one of your colleagues would like to participate in the Chamber Banking and Financial Services Committee Meetings and receive informational updates, please feel free to contact Marina Zayvenko, Coordinator.

On Monday, June 20^th the Chamber Banking and Financial Services Committee held its regular Meeting that was devoted to a number of questions, notably: the latest developments in the banking and financial services legislation, as well as the latest events held by the Chamber and FLIFI, etc. 

Mr. Wim Fonteyne, International Monetary Fund, told the participants about the technical assistance provided to the NBU under the IMF-CIDA that is called NBU Institutional Capacity Building. The main objective of this project is to improve the capacity of the NBU and provide technical support. He listed the main project components that were the following: monetary and exchange rate policy framework, including policy making support and internal communication of policy issues, exchange rate policy implementation and FX market development, monetary policy implementation and money market development, external communication of policy issues and inflation report; bank restructuring and financial stability review, comprising bank restructuring, introduction of financial stability function, support for implementation of recommendations of 2007 financial sector assessment program; as well as business surveys and regional economic analysis and NBU capacity building. Mr. Wim Fonteyne updated the participants on the current issues on which his project consulted the NBU. 

Please click here to see the brief overview of this project. 

Please keep in mind that you have to be logged into the Chamber SharePoint prior to accessing the documents. In order to access the document, please enter you login and password, then return to the Update and click the link. 

Mr. Engin Akçakoca, International Monetary Fund consultant, provided the participants with an overview of the issues on which he consult the NBU. They were the following: revision of the NBU Resolution #279 on Approval of the Regulation on Procedure of Formation and Usage of Provisions for Reimbursement of Possible Losses Under the Credit Banking Operations; development of comprehensive proposals to improve the legislation on creditors’ rights; improvement of the mergers and acquisition legislation and regulations in Ukraine. He also informed the participants about the meetings scheduled for this week and devoted to the abovementioned issues. 

Mr. Jacques Mounier, President of the Management Board, Credit Agricole CIB, Responsible Board Member and Co-Chair of the Chamber Banking and Financial Services Committee, reminded the participants of the letter sent to the NBU and the other work done by the Chamber Banking and Financial Services Committee regarding the IFRS, derivatives, licensing issues, futures. He stressed that the Chamber Committee will continue working on these issues and preparing recommendations to the NBU. 

Mr. Vladyslav Rashkovan, CFO, Member of the Management Board, UniCredit Bank, Co-Chair of the Chamber Banking and Financial Services Committee, touched upon the new Law signed on June 7, 2011 by the President of Ukraine, which assumed from the 1^st of January, 2012 to implement the IFRS in the public joint-stock companies, as well as companies involved in security business. He also updated the participants on the meeting of the Parliamentary Committee on Finance, Banking, Tax and Customs Policy, which was held on June 15, 2011 and devoted among other things to a “bad bank” creation in Ukraine. He told that the draft Law # 8586 dated 31.05.2011 “On Sanation Bank” provided for the creation of such a bank for the money of the NBU and would be given broad responsibilities, as well as it would be allowed to take the assets of banks. It was passed in the first reading on June 17, but it was proposed to change it while preparing for the second reading. 

Mr. Vladyslav Rashkovan also updated the participants on the essence of changes recently made in the Law 3024-VI of 15.01.2011, as well as of the recently adopted regulatory legal act, such as NBU Regulation #195 of 16.06.2011 “On Some Issues of Money Market Regulation”, NBU Regulation #170 of 31.05.2011. 

Mr. Marius Vismantas, Country Sector Coordinator for Ukraine, Belarus and Moldova Financial and Private Sector Development, World Bank Office in Ukraine, told the participants about the WB’s position on this issue and outlined proposals that had been earlier provided to the NBU. He underlined that it was a wrong solution to a wrong problem. 

After a long discussion of this issue the participant agreed that we had to oppose this law. It was decided to prepare a draft letter on the Chamber position on this Law and send to the Parliamentary Committee on Finance, Banking, Tax and Customs Policy. 

Mr. Jacques Mounier updated the participants on the Forum for Leading International Financial Institutions activity regarding agricultural lending, credit histories bureau and creditors’ rights protection, for which there were created special working groups. 

He also touched upon the draft Law # 8217 dated 12.03.2011 and its impact on the banks, especially regarding securities, repos, as well as on insurance companies.    

Mr. Jacques Mounier familiarized the participants with the results of the meeting of WG on repos held on June 17 and was devoted to the discussion of the repos issues and planning further steps in this regard. He noticed that it was decided to prepare a document for the NBU, in which the NBU would be proposed to modify the relevant Resolutions, chart of accounts, etc., in order for the repos to become possible from an accounting and regulatory standpoint in Ukraine. It was also decided that the working group should focus on repos made uniquely with T-Bills and Eurobonds issued by Ukraine and not wonder about other underlying assets. 

The attendees were also informed about the Chamber Banking and Financial Services activity that had been done since the previous Committee meeting, including about the Chamber letters that had been sent to the governmental institutions.  

It was agreed to hold the next Committee meeting on the 15^th of August, 2011. 

If you or one of your colleagues would like to participate in the Chamber Banking and Financial Services Committee Meetings and receive informational updates, please feel free to contact Svetlana Bykova, Chamber Committee Coordinator.

On Monday, May 30^th the Chamber Banking and Financial Services Committee held its regular Meeting that was devoted to a number of issues, in particular, the latest developments in the banking and financial services legislation, as well as the latest events held by the Chamber and the Forum for Leading International Financial Institutions. 

Mr. Marius Vismantas, Country Sector Coordinator for Ukraine, Belarus and Moldova Financial and Private Sector Development, World Bank Office in Ukraine, updated the participants on the draft Law # 8403 “On Changes to the Legislation regarding National Commissions – Market Regulators in Telecommunications, Energy, National Monopoly, Capital Markets and Financial Services”. He stressed that this law affects various regulators, not only financial ones. He highlighted the most arguable points of the draft, including the process of assignment and dismissal of the Heads of such Commissions, professional qualification of the Commissioners, budgetary financial independence of the Commissions, etc. 

Mr. Sergiy Ravnyago, Country Head of MasterCard Europe Sprl., and Ms. Svetlana Georbelidze, Head of Visa International Representative Office, informed the participants about the electronic payments market development in Ukraine that the industry is facing. Mr. Tetiana Sobolieva, Government Relations Manager, Visa International Representative Office, told those present about the current situation in the cashless payment market and industry, including the possible negative consequences of the drafts Laws # 664, 665 and 666, as well as the NBU Regulation 223. She also informed about the initiative to create a temporary working group on electronic payments within the EBA that will begin its activity in a few weeks. She also stressed that, despite this fact, Visa International and MasterCard Europe would rely on the Chamber assistance in the future. 

Mr. Andriy Pikula, First Deputy Chairman and COO, MetLife Alico, updated the participants about the current situation with introducing pension system in Ukraine, showed the dynamics of increasing the number of pensioners versus decreasing numbers of workers, as well as statistics and forecasts of life expectancy in Ukraine that are not very optimistic. He told about the essence and main innovations of the proposed pension reform that aims at assuring fair system of Pension Fund’s resources distribution; stabilizing pension system and guaranteed payment of pensions in the long run; legitimizing the population’s income; liquidating huge gaps between amounts of pensions, and assuring an economic growth and prosperity of Ukrainian citizens. 

To download his presentation, please click here (ENG).  

Please keep in mind that you have to be logged into the Chamber SharePoint prior to accessing the documents. In order to access the document, please enter you login and password, then return to the Update and click the link. 

The participants decided to monitor new legislative initiatives regarding the pension reform made public at the official websites of the governmental institutions. Mr. Jacques Mounier, President of the Management Board, Credit Agricole CIB, Responsible Board Member and Co-Chair of the Chamber Banking and Financial Services Committee, suggested to establish a specific working group on this issue in due time. 

Mr. Robert Bond, Chief of the USAID FINREP project, updated the attendees on the single central depository issues and distributed materials on this topic. Please click here to download the “Key Facts” (ENG) and here for the U.S.-Ukraine Business Council position paper (ENG). He also listed the principles that would be proposed to the governmental institutions for consideration. He also informed that recently it had been decided to create an expert panel of advisors to the Working Committee set up for the NBU and Securities Commission to discuss all the issues relating to the depository system. The participants decided to participate actively in this panel. 

Mr. Yuriy Popov, CLC Senior Legal Consultant, told the participants about the draft
Law # 8295 “On Amendments to Some Laws of Ukraine to Simplify the Procedures of Termination of Legal Entities and Private Entrepreneurs Activities” that was passed in the first reading. In particular, he addressed the provisions concerning the relations between creditors and debtors, as they include a lot of innovations. Mr. Yuriy Popov also presented the draft Chamber letter regarding this issue and proposed to send it to the President of Ukraine, asking him to veto this draft Law. 

Mr. Jacques Mounier updated the participants on the Adam Smith Conferences’ 7^th Annual Ukrainian Investments Summit held on May 16^th - 18^th, 2011 in London and the recent activity of the Forum for Leading International Financial Institutions.  

The attendees were also informed about the Chamber Banking and Financial Services actions taken since the previous Committee meeting, including the Chamber letters sent to and responses received from the governmental institutions.  

It was agreed to hold the next Committee meeting on the 20^th of June, 2011.

Please click here to view the Minutes of the Meeting (ENG). 

If you or one of your colleagues would like to participate in the Chamber Banking and Financial Services Committee Meetings and receive informational updates, please feel free to contact Svetlana Bykova, Chamber Committee Coordinator.

Opening the meeting Mr. Jacques Mounier, Co-Chair, Credit Agricole Corporate and Investment Bank, updated the participants on the Chamber “In-Focus” Meeting with the Peoples’ Deputies of the Party of Regions and told that it was agreed with Mr. Vitaliy Khomutynnik that one person, representing the Chamber and being a perfect expert, would take part in the meetings of the Parliamentary Committee on Finance, Banking, Tax and Customs Policy on a permanent base.  

Mr. Stanislav Dubko, Credit-Rating, updated the attendees on the latest developments and existing problems on the rating services market in Ukraine that, in his opinion, will not benefit participants of the financial market and can damage the reputation of all existing players. He also familiarized the participants with the European practice in this sphere. Mr. Dubko said that the first meeting of the working group under the Securities and Stock Market State Commission of Ukraine was scheduled for Thursday, April 21, 2011. This working group was set up in order to develop legislation that could stimulate effective control over rating agencies. 

To download the letter covering this issue please click here (ENG). 

Please keep in mind that you have to be logged into the Chamber SharePoint prior to accessing the documents. In order to access the document, please enter you login and password, then return to the Update and click the link. 

Mr. Jacques Mounier updated the participants on the statistics about the business climate based on the number of requests received by banks during the 1^st quarters of the years 2010 and 2011 from the government authorities to arrest accounts of the bank customers; provide data about transactions of the bank customers over a certain period; provide some documents about their transactions; provide some or even all the documents from the customer’s legal file, etc. Despite the fact that the number of requests varies among banks and they do not reflect the real picture. There is a possibility to track a trend in increasing the number of such requests as a whole. 

The participants were also informed about an intention to establish a working group for the banks to work together on the practical consequences in their collateral management that results from the Law of Ukraine # 2677-VI dated 04.11.2010 “On Amendments to the Law of Ukraine “On Enforcement Proceedings” and Other Legislative Acts of Ukraine On Improving the Procedure for Enforcement of Court Decisions and Other Bodies (Officials)” and elaborate a common position on it. Five representatives of banks and law firms have already confirmed their participation in the working group. 

Mr. Jacques Mounier updated the participants on the FLIFI working group “On Deposit Guarantee Fund”, meeting with Mr. Yurii Kolobov, First Deputy Governor of the National Bank of Ukraine, held on the 6^th of April in order to discuss forwards related issues, activities in lenders and borrowers protection, as well as plans to establish a Repo working group. 

Mr. Andriy Lyssak, Credit Agricole Corporate and Investment Bank, updated the participants on the financial monitoring issues. He told about the consequences of adoption and implementation of the changes that had been recently introduced to the Resolution of the NBU “On Approval of Regulation About Performance of Financial Monitoring by the Banks” # 189 dated 14.05.03, in particular, the issue of the changes to it introduced by the Resolution of the NBU # 22 dated 31.01.11.  

To read the novelties of this regulation and see the draft Chamber position on it that has been previously distributed among the members of this Chamber Committee, please click UKR or ENG. 

Please click here to view the Minutes of the Meeting (ENG). 

If you or one of your colleagues would like to participate in the Chamber Banking and Financial Services Committee Meetings and receive informational updates, please feel free to contact Svetlana Bykova, Chamber Committee Coordinator.

On Monday, March 28^th, 2011 Chamber Banking and Financial Services Committee held its regular Meeting.  

Invited guest-speaker Ms. Angela Prigozhina, Senior Financial Sector Specialist, World Bank Office in Ukraine, in her presentation entitled “Ukraine: resolution of failed banks and new roles of DGF” told about the importance of the deposit insurance, as well as bank resolution reform in Ukraine, which shall be aimed at strengthening deposit insurance system; reducing losses of the DGF and the Ukrainian banking sector and the state from resolution of failed banks; enhancing quality of banking supervision, moving resolution of non-viable banks outside NBU and removing conflict of interest in NBU activities as lender of last resort and supervisor in bank resolution. She also told about the international frameworks for bank supervision and deposit insurance reforms. 

Ms. Angela Prigozhina stressed the need to prepare for the next crisis and listed the measures that are very important in this context, inter alia: to enhance deposit insurance, bank supervision and regulation, as well as banking sector risks management. She also explained the essence of the proposed reform as regards the DGF. 

Please click here to view the presentation (ENG).  

Ms. Svetlana Georbelidze, Visa International Representative Office, updated the attendances on the NBU Resolution #223 “On Transactions Using Special Means of Payments” and told that experts are elaborating the methods of implementing new requirements, stated in this Resolution. It was decided to prepare a draft response to the NBU in this respect. 

Mr. Vladyslav Rashkovan, UniCredit Bank, OJSC, Committee Co-Chair updated the attendances on the Meeting in the NBU under IMF sponsorship on the issue of easing bank merger procedures. It was decided to send a letter to the NBU, containing clear proposals how to amend respective legislation. All members of the Committee were invited to give their comments. 

Mr. Jacques Mounier, Credit Agricole Corporate and Investment Bank,  Committee Co-Chair updated the attendances on the current activities of the Forum for Leading International Financial Institutions and informed the participants on the first in 2011 Business Networking event, the Forum General Meeting that was hold on Wednesday, March 23^rd, 2011, with the participation of leaders from all member banks.  

To download the Forum presentation, please click here (UKR). 

During the Meeting it was also decided that Mr. Olexiy Soshenko, Clifford Chance, will prepare a draft letter concerning the need to amend the NBU Regulation #279 “On Approval of the Regulation On Procedure of Formation and Usage of Provisions for Reimbursement of Possible Losses Under Credit Baking Operations” dated July 6, 2000 (as amended) to allow all members of the bank syndicate to take into account the security and collateral granted in the name of the security agent acting in the interests of all lenders. 

The participants discussed the consequences of implementing the NBU Resolution #454 “On Approval of Amendments to the Procedure of Establishment and State Registration of Banks, Opening Branches, Outlets and Representative Offices” and the Law #2677-VI on enforcement procedures, as well as other normative acts, stated in the agenda. 

Please click here to download Minutes of the recent Chamber Banking and Financial Services Committee Meeting, held on March 28, 2011. 

If you or one of your colleagues would like to participate in the Chamber Banking and Financial Services Committee Meetings and receive informational updates, please feel free to contact Svetlana Bykova, Chamber Committee Coordinator.

On Monday, February 28^th, 2011 the Chamber Banking and Financial Services Committee held its regular Meeting. 

Mr. Paul Roberti, USAID/FINREP, in his presentation entitled “The Repo market” has provided repurchase agreement definition (repo), identified types of repos, reasons why such agreements are relevant in Ukraine, recent legislative amendments in Ukraine affecting repo and impediments to repo market development in Ukraine. 

Please click here to view the presentation (ENG). 

Speaking on enforceability of cross-border suretyships, especially on NBU licensing and convertibility issues, Mr. Olexiy Soshenko, Clifford Chance suggested modifying the document to envisage such requirements by addressing the National Bank of Ukraine. 

Other decisions taken at the Meeting were as follows: 

• To clarify provisions related to NBU Resolution #572 “On Regulation of Issues Regarding Realization of Certain Currency Transactions” which would oblige banks to use separate analytical accounts to monitor UAH transactions of foreign investors after the official document is issued; 

• To analyze provisions regarding listing in the Law #2994-VI (Draft Law #6216 “On Amendments to the Law of Ukraine “On Joint Stock Companies” (regarding improvement of the mechanism of activity)) and draft the position; 

• To prepare the Chamber position related to payment instructions for FX and payment orders in UAH and USD to be received via SWIFT from non-resident investors instead of paper-based instruction. 

Moreover, attendees were informed on the activities of the Special Working Group under the Chamber Banking and Financial Services Committee on NBU Regulation #279 which held its Meeting on February 17, 2011, and will draft the position which will be then aligned with the position of the Forum for Leading International Financial Institutions.

Please click here to download Minutes of the recent Chamber Banking and Financial Services Committee Meeting, held on February 28, 2011. 

Please keep in mind that you have to be logged into the Chamber SharePoint prior to accessing the documents. In order to access the document, please enter you login and password, then return to the Update and click the link.

If you or one of your colleagues would like to participate in the Chamber Banking and Financial Services Committee Meetings and receive informational updates, please feel free to contact Olena Lukianenko, Chamber Senior Committee Coordinator.

On Monday, January 24^th, Chamber Banking and Financial Services Committee held its regular Meeting. 

Invited guest-speaker Mr. Marius Vismantas, World Bank Office in Ukraine made a brief update on Presidential Decree #1119/2010 and its implications to financial sector, particularly establishment of development bank, reduction of circulation of foreign currency in the market etc. Participants agreed to follow up after the relevant legislative initiatives will appear in pursuance of the mentioned Decree. 

Mr. Dmytro Zinkov, OTP Bank JSC spoke on recent court decision which allowed borrower to challenge validity of the loan agreement and win after passing three court stages. The case unveils the way for borrowers not to pay off the debt to the bank and in fact undermines lending function of the bank. Thus it was decided to issue the press release on the topic  to express concern. 

Among other decisions taken were as follows: 

Mr. Oleksii Lukash, Chamber Banking and Financial Services Committee Secretary, PRAVEX-BANK, JSCB offered to address the President in regards to the Draft Law #6216 “On Amendments to the Law of Ukraine “On Joint Stock Companies” (regarding improvement of the mechanism of activity) which was vetoed lately, particularly touching listing requirements for banks - public joint stock companies. 

Considering the new provisioning scheme on banks assets and commitments to be introduced, the attendees decided to look through the NBU Regulation #279 “On Approval of the Regulation “On Procedure of Formation and Usage of Provisions for Reimbursement of Possible Losses Under Credit Banking Operations” and Draft NBU Regulation "On Procedure of Formation and Usage by Banks of Ukraine Provisions for Reimbursement of Possible Losses Under Active Banking Operations" and constitute the Working Group to deal with the issue. 

Please click here to download Minutes of the recent Chamber Banking and Financial Services Committee Meeting, held on January 24, 2011.

Please keep in mind that you have to be logged into the Chamber SharePoint prior to accessing the documents. In order to access the document, please enter you login and password, then return to the Update and click the link.

If you or one of your colleagues would like to participate in the Chamber Banking and Financial Services Committee Meetings and receive informational updates, please feel free to contact Olena Lukianenko, Chamber Senior Committee Coordinator.

Invited guest-speaker Mr. Anatoliy Zhukov, Association of Ukrainian Banks commented on the Law #2464 (Draft Law #6525)   “On Collection and Accounting of Single Payment for Obligatory State Social Insurance” and on Regulation of the Pension Fund “On Approval of the Procedure of Obtainment by Banks of Accounting Documents for Salary Payment” #21-3 dated September 27, 2010 and called the Members of the Committee (mainly banks) to prepare appeals to administrative court in regards to these legislative modifications. 

Further Mr. Dmytro Tsapenko, UkrSibbank, JSC presented the joint position of UkrSibbank and Swedbank regarding calculation of medium and long term liquidity gaps (analyzing international practice, conducting own investigation and using statistics) and invited other banks – Members of the Committee to comment. 

Mr. Vladyslav Rashkovan, Co-Chair of the Chamber Banking and Financial Services Committee, UniCredit Bank made an extensive overview of certain NBU Regulations: NBU Resolution #490 on Cancellation of the NBU Regulation on Appeal Commission of NBU; NBU Resolutions #513/514, that replace NBU Resolution #650; NBU Letter “Regarding Execution of Agreements on Attraction of Facilities Under Sub Loans”. Attendees decided to prepare the Chamber position on NBU Resolution #490. 

Another interesting agenda item was Single Payment Area Issue Update, in regards to which Mr. Serhiy Movchan, PBN Company  informed that the consideration of Draft Law  #6465 “On Amendments to Certain Legislative Acts of Ukraine (regarding improvement of payment systems functioning mechanisms and special payment means) and the Draft Law #6466 “On Amendments to the Law of Ukraine “On Payment Systems and Transfer of Funds in Ukraine” (regarding development of non-cash transactions using special payment means and national payment area) had been put on hold and the Drafts will be agreed with interested stakeholders, which was one of the arguments of the Chamber position on these Drafts. 

Please click here to download the Minutes of the Chamber Banking and Financial Services Committee Meeting, held on December 20, 2010.

Please keep in mind that you have to be logged into the Chamber SharePoint prior to accessing the documents. In order to access the document, please enter you login and password, then return to the Update and click the link. 

If you or one of your colleagues would like to participate in the Chamber Banking and Financial Services Committee Meetings and receive informational updates, please feel free to contact Olena Lukianenko, Chamber Senior Committee Coordinator.