KYIV, July 17 – Ukrainian President Leonid Kuchma has signed a decree aimed at strengthening the ex-Soviet state”s banking system by cutting its tax burden and boosting security, the presidential press service said on Monday.
Under the decree, the central bank and the government should by November 1, 2000 develop a program for banking system development in 2001-2003.
The program is to focus on the following issues:
- boosting banking capital
- attracting foreign investment to the sector
- creating conditions for setting up and developing mortgage banks and the Ukrainian bank for reconstruction and development
- setting up a body to monitor banking activity that will be independent from the central bank and a unit to handle debt obligations of bankrupt banks
- restructuring of major commercial bank Ukraina, and state banks Ukreximbank and Oshchadbank in 2000 and 2001
- setting up a unified system for registration of bad borrowers.
The government will also submit amendments to parliament aimed at cutting tax pressure on banks.
