OREANDA-NEWS. The IMF mission, headed by Nikolay Gueorguiev, will operate in Ukraine from June 24 to July 4, 2014, in order to assess Ukraine's progress in implementing the Stand-By Arrangement entered into between Ukraine and the IMF.

At the meeting, the governor expressed hope for successful and fruitful cooperation with the IMF in the future. She said that the National Bank was interested in effective dialogue and cooperation regarding Ukraine's economic situation, as well as in joining efforts to find ways to address problems in the financial sector.

The Mission Chief Nikolay Gueorguiev congratulated Hontareva on her appointment as governor and wished her success in developing Ukraine's banking system.

The participants discussed monetary policies and current banking sector conditions in detail, as well as prospects for the development of monetary policy and the banking sector in 2014.

Gontareva said that the National Bank was consistently implementing all the provisions envisaged in the arrangement. She also said that today the central bank's main objective was to reshape monetary policy and to adopt inflation targeting. To that end, a 12 month schedule for adopting inflation targeting has been drawn. It should facilitate the effective and gradual use of monetary tools to affect the inflation rate.

It is also extremely important to make comprehensive reforms of the banking sector, in order to consolidate it, improve corporate governance, enhance the transparency of funding sources, and make risk management more effective.

Gontareva said that in spite of there being a difficult geopolitical situation in the country the central bank had managed to deliver financial sector stability, operate a flexible exchange rate regime and fulfill all obligations under the Stand-By Arrangement.

The gradual liberalization of Ukraine's foreign exchange market is another important issue that must be dealt with in the immediate future.

The participants agreed to address all the raised issues in detail at other working meetings with IMF mission staff that are to take place during the mission's stay in Ukraine.