The National Bank Council at its meeting on Monday discussed the latest macroeconomic indicators and most recent developments in Ukraine and consequences on the domestic economy. The National Bank will continue to closely monitor the development of events, which are changing continually.

Given the small connection of our economy with the economies of Russia and Ukraine, no direct impacts are expected, but indirect ones are possible. Recent developments are particularly affecting the global energy and food markets, which together with growing uncertainty could worsen the growth prospects of the European and world economies.

The safeguards in our financial system are adequate and it will continue to function smoothly and provide support to the economy. Russian or Ukrainian capital is not present in the ownership structure of our banks, so from that aspect there is no exposure to the stability of the domestic banking system. At the same time, it was concluded at the Council session that the foreign exchange reserves are in the safe zone and provide sufficient foreign exchange liquidity to the domestic economy and stability of the domestic currency.