This specific Thursday, the Verkhovna Rada (the parliament of Ukraine) considers a historic proposal to replace 25-year-old foreign exchange legislation with an entirely brand-new law in which will open our country to international investors along with make the idea easier for Ukrainian businesses to operate globally.
Technical though the idea may seem, liberalization of our arcane foreign exchange controls will make Ukraine a much more investor-friendly place along with will help the country take its rightful spot amongst the major European along with global economies.
For nearly four years at This specific point, we at the National Bank of Ukraine (NBU) have been working to stabilize the macroeconomic situation along with create a solid foundation for economic growth in Ukraine along with prosperity for all who live along with work here.
We have come a long way during in which time. My brand-new post-revolutionary team took over the National Bank in 2014, finding ourselves in an incredibly difficult context. Ukraine was not only experiencing military aggression coming from Russia inside the East, yet the profound economic turmoil in which coincided with the idea — since, our team at the National Bank have worked tirelessly to stabilize the situation along with tame inflation.
Today, the banking system can be in better shape than the idea ever has been inside the history of independent Ukraine thanks to the clean-up along with reforms implemented since 2014. All of the obligations in which the National Bank took on under the last IMF (International Monetary Fund) memorandum have been fulfilled.
External markets are also favorable for Ukraine as economies of our trade partners are recovering along with commodity prices are high.
We must maintain This specific momentum, make life better for businesses along with support investment. The time has come for large-scale foreign exchange liberalization. The proposed law moves us toward in which goal.
To say the idea can be overdue might be an understatement. The key legislation setting out our current currency control rules can be a full 25 years old along with the idea has not aged well. inside the 1990s when Ukraine was struggling to tackle the Soviet legacy, set its economy on market rails along with control capital outflows, highly restrictive rules on foreign currency transactions made sense. Today they are out of place along with are holding back growth.
Out of Ukraine’s patchwork of foreign exchange laws, about 70 percent of the rules are about prohibiting or restricting things. This specific means administrative burden, delays along with complications for Ukrainian businesses trading with overseas partners, foreign investors repatriating their investment or dividends, for Ukrainian freelancers doing work for overseas clients along with many others.
The regulatory system we have had in place for the last quarter of a century no longer reflects the business environment in Ukraine. Our highly qualified, multilingual workforce along with our innovative approach to development has seen an ever-increasing amount of interest coming from foreign investors looking to set up in or outsource operations to Europe.
Our tech sector can be yet one example: a thriving industry worth around $5 billion. We boast the largest number of the idea professionals in Europe along with play host to numerous multinational brands including Google, Microsoft, Samsung, Boeing, eBay, Siemens, IBM along with Huawei, who all have research along with development centers here.