KYIV, Oct 2 - The National Bank of Ukraine (NBU) started working closely with the central banks of Poland and Lithuania to strengthen its institutional and regulatory capacities for implementing the Association Agreement between Ukraine and the European Union.

The developments come within the framework of the European Union Twinning project started on October 1 and will last for 21 months, according to the NBU. The project will cost EUR 1 million and will be paid by the EU.

The central banks of Poland and Lithuania will provide support to the National Bank of Ukraine in a number of areas, in particular, on the development of approaches to banking supervision within the framework of the Supervisory Review and Evaluation Process (SREP), on the introduction of an instant payment system, on improving strategic planning and process management in the central bank, as well as to improve the process of European integration and international cooperation of the central bank.

The NBU explained that Twinning is an instrument for the institutional development of the EU, the essence of which is cooperation and exchange of experience between the government agencies of Ukraine and similar institutions of the EU member states.

It is noted that the theme of the projects is public administration and the approximation of the national legislation to EU standards.

The regulator recalled that in 2009-2011 the National Bank was already involved in the Twinning project, as a result of which the project on strengthening the NBU's potential through approximation to EU standards regarding the activities of central banks was successfully implemented. (om/ez)