Ukraine’s insurers asking country leadership to settle issue with forex payments …
Kyiv, October 16 (Interfax-Ukraine) – Ukrainian insurers have called on the president and the prime minister to resolve the crisis situation that has arisen on the reinsurance market due to the banks’ blocking purchase of foreign currency by insurers to repay their obligations to non-resident insurers, according to participants in a press conference at Interfax-Ukraine.
President of the League of Insurance Organizations of Ukraine (LIOU) Oleksandr Zaletov said that the prohibition imposed by NBU decree No. 540 on transactions in foreign currency for payments on import operations without goods imports to the territory of Ukraine for reinsurance services leads to the delay in the non-fulfillment of reinsurance contracts in connection with the non-payment of reinsurance premiums.
He said this affects the reputation of Ukrainian insurance companies and the insurance business as a whole in this difficult economic period.
“For 20 days the insurance market has no answer to this question, in spite of repeated requests to the NBU from the side of the LIOU, associations, federations, professional operators of the market. The reinsurance market is important for the operation of the entire Ukrainian insurance market, as there are objects that have quite a high cost and both in theory and practice cannot be serviced by the national insurers,” he said.