Business news from Ukraine

Business news from Ukraine

SHARE OF SHADOW ECONOMY IN UKRAINE SHOULD FALL TO NO MORE 20% OF GDP BY 2025 – STRATEGY

20 January , 2020  

The share of the shadow economy in Ukraine should decrease from 30% of GDP (according to calculations of the Ministry of Economic Development, Trade and Agriculture for 2018) to no more than 20% of GDP by 2025, according to Strategy of Ukrainian Financial Sector Development until 2025 approved by the regulators of the financial market on January 16. According to the document post on the website of the National Bank of Ukraine (NBU), the total volume of public debt for this period should decrease from 52.3% to no more than 40% of GDP, the deficit of public debt – from 2.1% in 2019 to 1.5% at the end of 2024. It is envisaged that the share of state-owned banks of the assets of the banking system over this period will decrease from 60.1% to no more than 25%.
The share of non-performing loans (NPL) in the banking system will decrease and will not exceed 10% of the total volume of loans (52.9% in 2019). At the same time, net loans in foreign currency of the total volume of net loans will decrease from 41.4% to no more than 30%, and deposits in foreign currency will not exceed 30% of the total deposits (41.7% in 2019).
The volume of net bank loans will increase from 16.5% to 22% of GDP, and the level of penetration of lending to SMEs – from 1.4% to 3% of GDP.
The cash (M0) and GDP ratio will decrease from 9.2% to no more than 7.5%. The share of banks issuing cards of the Prostir national payment system will increase from 21.5% to more than 70%, and the acceptance of Prostir payment cards will increase to more than 99%. The level of public confidence in the financial system will increase from 10% to 60% by 2025, the index of the level of financial literacy – from 11.6 to 12.5.