January

There was conducted a consultative meeting on the occasion of bringing the State Mortgage Registry of Movables into force from March 1, 1999 and preparation of the banking system to work with the Registry of both clients and registrars.

February

There took place a business meeting of the administration of AUB with Mr. Victor Yushchenko, Head of the NBU considering the issues on condition of the finance market in Ukraine, consequences for the Ukrainian banking system following enforcement of Decree ¹ 127 of the Cabinet of Ministers of January 30, 1999.

There was held a meeting of the AUB administration with Mr. Petro Germanchuk, First Deputy of Finance Minister of Ukraine and Mr. Anatoly Litvin, Deputy Minister on Conversion of State Internal Bonds (Decree ¹ 127 of the Cabinet of Ministers of January 30, 1999). The Association of Ukrainian Banks purposively maintained its position as to conversion of state internal bonds to be implemented only on a voluntary basis taking into account commercial banks’ possibilities, their liquidity and financial solvency.

The Association of Ukrainian Banks applied to the Judicial Branch with a suit as to recognition of Resolution ¹ 127 of the Cabinet of Ministers of January 30, 1999 as such that contradicts to existing legislation.

The Association of Ukrainian Banks applied to the Judicial Branch with a suit as to recognition of Order ¹ 415 of the State Tax Administration of August 27, 1998 as such that contradicts to existing legislation.

March

There took place a meeting between Mr. Leonid Kuchma, President of Ukraine, directors of commercial banks, AUB, regional bank unions. Under discussion at that meeting there were the questions on crediting real sector of the economy, formation of statutory bank funds, revival of the stock market functioning, providing information to tax agencies.

April

There were held panel discussions on the theme “Coercion of Banks to Fiscal Actions” dwelling on the issues of unlawful demands of the State Tax Administration as to providing by banks the information as to availability of money and movement on account. Panel discussion participants passed an open letter condemning a non-civilized demand of the STA. The position of the Association was published in the press.

May

There took place a consultative seminar “Current Questions of Commercial Banks’ Activities on the Stock Market of Ukraine”. Considered were the problems and prospects of bank activities on the stock market in the capacity of issuers, financial mediators and investors.

June

The 8 ^th convention of AUB was held.

September

There took place a consultative meeting as to the condition of the banking system, execution of resolutions of the 8 ^th convention of AUB, completion of the draft law “On Banks and Banking”. There was created a workshop on completing the draft law “On Banks and Banking” involving representatives of AUB , the NBU and those of individual commercial banks.

November

There was held a meeting between directors of AUB, those of a number of commercial banks and Mr. V. A. Yushchenko, Head of the NBU. Discussed were the points of strategic development of the banking system of Ukraine. There was also passed a decision as to elaboration of the draft of “Concept of Development of the Banking System”.

There took place a meeting between the AUB Council and Mr. Victor Yushchenko highlighting the questions of the condition of the banking system, formation of required reserves from the costs encouraged in foreign currency, protection of banks’ capital assets from devaluation.

November

A workshop on completion the draft law “On Banks and Banking” involving Mr. Igor Yushko, an MP, the administration of the NBU and AUB as well as commercial banks’ representatives was working at the Commission on Finance and Banking of the Verkhovna Rada of Ukraine.

December

There took place a consultative meeting of directors of regional banks’ associations. Managing Directors of the Crimean, Dnipropetrovsk, Kharkiv and Odessa Bank Unions, those of the Association of Banks of Lviv Region accentuated the necessity of strengthening cooperation between AUB and regional bank associations.