In NBU expects a significant increase in money supply in 2011

Chapter of the National Bank of Ukraine (NBU) Sergey Arbuzov said that the National Bank expects growth rate of money supply next year at the level of 18-22%. "Renewal of the demand for domestic currency as a store of value and means of payment in stabilizing the financial system will contribute to further growth in banks' deposit base," - said Arbuzov. According to him, the calculations have been carried out on basis approved by the government forecasts GDP growth in 2011 to 4,5% at inflation 8,9%, give reason to expect growth in total deposits in 2011 at a level of 20-24%. "In turn, expanding the resource base of banks, as well as increase in demand for credit resources on the background of economic recovery will be factors in the growth of total loans - by 21-25%, "- said Arbuzov. As reported, the monetary base for January-November 2010 increased by 10,6%, weight - 17, 9%. The total amount of deposits during this period increased by 21,9%, while growth in lending to the economy amounted to 1,4%. The head of the NBU said that in 2011 we can expect continued downward trend in the cost of credit. "Conducting judicious macroeconomic and monetary monetary policy will help stabilize inflation expectations and the realization of a series developed by the NBU measures - reducing the risk premium, "- he explained. In addition, Arbuzov said, the NBU will try to make the lending resources are directed primarily on lending to priority projects economic development, and is ready to closely cooperate with the government in this matter. According to him, the National Bank has already developed and sent to the Cabinet a draft package of measures to stimulate lending activity of banks and financial sector development. NBU said that the document includes a question of improving the legal framework affecting the lending operations of banks. "We are talking about improving the protection of creditors' rights, standardization of collection activities. In addition, the proposed measures are directly related to the formation of banks' resource base: the protection of the massive outflow of funds from deposits, improving the system of guaranteeing deposits ", - said Arbuzov. He said the package of proposals also includes initiatives to strengthen the institutional capacity of the NBU, in particular, in promoting financial stability, the development of the stock market. "Stimulation processes credit the real sector of the economy also will be funded by interest-rate policy, suspended the activities of liquidity management. At the same will be sent to the creation of tools to transform the banks borrowed funds in foreign currency long-term resources in the national currency ", - summed up the watermelons. Recall the Prime Minister Nikolai Azarov will ensure that the next, 2011, the year will be economically and financially better." I can not guarantee that there will be some, say, earthquakes, floods, droughts, but it does not depend on me. But even to such natural disasters we have come more prepared, better equipped ... Even to the state reserve will be created the necessary reserves to any natural disaster could meet prepared. Everything will be absolutely everything you need. Therefore, a natural disaster, I can not guarantee this, but what year would be economically and financially better, I can guarantee "-" Azarov said. Source: Korrespondent.net