NBP supports the NBU in the implementation of the EU-Ukraine Association Agreement

On 9 March 2021, high-level representatives of the National Bank of Ukraine (NBU), the European Union Delegation to Ukraine, Narodowy Bank Polski and Lietuvos bankas met on-line to mark the launch of the EU-funded twinning project to strengthen Ukraine’s central bank.

On 9 March 2021 Dmytro Sologub, Deputy Governor of the NBU, Chloé Allio from the EU Delegation to Ukraine, Marta Gajęcka, Board Member of Narodowy Bank Polski, and Vitas Vasiliauskas, Board Chairman of Lietuvos bankas, met online to launch a twinning project for the Ukrainian central bank conducted by Narodowy Bank Polski (lead partner) in cooperation with Lietuvos bankas (junior partner). The meeting was attended by the NBU staff, officials from relevant sectoral ministries and agencies, representatives of business associations, diplomats, academics and journalists.

The European Union has allocated EUR 1 million to support the NBU in implementing a number of provisions of the EU-Ukraine Association Agreement. The project will run until June 2022 and will involve dozens of experts from Narodowy Bank Polski and Lietuvos bankas, accompanied by professionals from five other European national central banks.

The twinning project focuses on four areas. In the first one, the NBU, using European experience, will introduce new capital requirements for commercial banks to meet international capital adequacy standards. The NBU as a regulator will be able to better assess the condition of the banking sector; while banks – by meeting the new requirements – should be a safer place from the customer’s perspective.

The project is also to help develop payment systems in Ukraine and define for Ukraine the most suitable model of instant payments, its architecture, and the road map for its implementation. Experts will discuss and develop an immediate payment model and secure implementation in the nearest future. As a result, Ukrainian customers will be offered a new payment method based on modern technology.

Thirdly, for the modernization of the NBU, the twinning project will provide inspiration on how to improve strategic planning at different levels. Fourthly, the NBU will receive know-how and support for the development of its international activities.

As NBU Deputy Governor Dmytro Sologub said: “For Ukraine, European integration is a cornerstone on the road to pursuing national interests and building an economically developed and democratic state. EU integration is a long-term and extremely ambitious project for Ukraine, but we at the central bank are doing our best for the successful implementation of the EU-Ukraine Association Agreement. No doubt, the twinning project with our European partners will be an effective instrument for developing our institutional capacity, strengthening the banking system of Ukraine, and introducing innovative financial technologies. This is another important step we are taking towards the integration of the National Bank of Ukraine into the European community of central banks.”

“Poland has always supported Ukraine’s close cooperation with the institutions of the European Union. Ukraine is also a key partner of the Eastern Partnership initiative and the Polish Development Cooperation Programme,” said Marta Gajęcka, NBP Board Member: “For many years Narodowy Bank Polski has been supporting the Ukrainian central bank. The results of our cooperation are fascinating. We observe with satisfaction the National Bank of Ukraine’s development – what a modern, well-managed organization it has become, appreciated in many fields and deservedly awarded for its tremendous efforts. We are glad that we have our part in it.”

According to the Governor of Lietuvos bankas Vitas Vasiliauskas: “It is in the very interest of both the EU and Ukraine to proceed with building a modern and transparent banking system in Ukraine with the NBU being at the forefront of this progress. Thus Lietuvos bankas, Narodowy Bank Polski, and the NBU are taking concrete steps under the hood of the EU-funded twinning project to share the best central banking practice and help all the central banks involved to become more efficient and internationally active institutions creating value added to the societies of their countries.”

Chloé Allio, Head of Section of the EU Delegation to Ukraine, stressed that “the National Bank’s policies have served the Ukrainian economy and Ukrainian people well, maintaining macroeconomic stability, restructuring the entire banking sector and guiding it through the Covid crisis without significant losses. The National Bank of Ukraine is already a strong, independent and technically competent institution. We are confident that this twinning project, involving exchange of the most recent experience with peer central banks, will help to step up the alignment with EU practices in banking and payments, and will further advance the international standing of the NBU”.

For now, due to the Covid-19 pandemic, all project activities are carried out remotely.

Note for editors:

Twinning is a European Union instrument for institutional cooperation between public administrations of EU Member States and of beneficiary or partner countries. Twinning projects bring together public sector expertise from EU Member States and beneficiary countries with the aim of achieving concrete mandatory operational results through peer-to-peer activities.

To see more: https://ec.europa.eu/neighbourhood-enlargement/tenders/twinning_en .

The legal basis for this project is an agreement between the European Commission and a consortium of central banks (Narodowy Bank Polski, lead partner) and Lithuania (Bank of Lithuania; junior partner). Until June 2022, the European Union has earmarked EUR 1 million from its budget to finance the twinning project.

Contact for media: e-mail press@nbp.pl, tel. +48 22 185 20 12.