On 3 September,
Minister of Finance of Ukraine Natalie Jaresko and Roland Ziller,
a member of the Management Committee of the German state bank KfW, signed
an agreement providing Ukraine with €200 Million EUR loan. This loan will be
guaranteed by the Government of Germany. This money will support the Individual
Deposits Assurance Fund (IDAF) which is responsible for returning deposits of
Ukrainian citizens from bankrupt banks, and the withdrawal of such institutions
from the market. The IDAF will work together with the Ministry of Finance and
the National Bank of Ukraine. This measure will help improve confidence in
Ukraine's banking sector.
Particularly, in order to
enhance the protection of individual deposits, the Ministry together with the
National Bank and international financial organizations developed the Law on
IDAF which was approved by the Verkhovna Rada. This Law significantly
simplifies and accelerates the process of returning deposits as well as limits
the abuse and introduces criminal liability for the bank owners and related
entities.
“On behalf of the Ukrainian
people I would like to express my sincere gratitude to KfW and the Government
of Germany for their support. This agreement will give an opportunity to
millions of ordinary citizens to receive their deposits from problematic banks
within the state guaranteed limit and will also contribute to the recovery of
the banking system of our country” Minister of Finance Natalie Jaresko said
during the signing of the Agreement.
“These are decisive days and
weeks for Ukraine on its path towards a more stable political and economic
future which will give the people of the country real prospects. Ukraine
deserves a real chance to implement the necessary far-reaching reforms. This
requires strong political will in Kyiv, but also active and lasting help from
the international community. Germany is supporting Ukrainian reform efforts and it’s political
and economic stabilization. The loan agreement signed today is an important
contribution to rebuilding and stabilizing Ukraine and an expression of
Germany’s solidarity with Ukraine and its people. It supplements Germany’s
contribution to EU, IMF and other multilateral funds as well as our bilateral
financial and technical assistance to Ukraine” commented Ambassador
of Germany to Ukraine Christof Weil.
“By providing the loan for
Individual Deposits Assurance Fund, KfW makes an important contribution
to the restoration of confidence of Ukrainian depositors in the Ukrainian
banking system, thus significantly supporting the stability of the financial
system of Ukraine” said Roland Ziller, Member of the Management
Committee of the German state bank KfW.
The loan is issued under the
close cooperation of KfW with the World Bank. This means that
receiving these funds became possible due to Ukraine’s implementation of a
number of important reforms under the framework of the World Bank’s Development
Policy Loan ІІ. As a result the Law on IDAF was adopted. The providing of this
loan to Ukraine symbolizes the quality of the Ukrainian Government’s reforms.
KfW is a German state
bank which was established in 1948 and today is one of the most prominent
development banks in the world. During the period from 2002 till 2014 Ukraine
received from KfW approximately 270 million Euro (193
million Euro from the federal budget and approximately 76 million Euro of KfW’s own
funds) for projects on the development of the financial system, electricity
supply, municipal water supply and sewerage, social infrastructure in
communities as well as on environmental protection.
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