EU concerned about independence of National Bank of Ukraine

Source : 112 Ukraine

The reasons for such worries are the resignation of NBU Head and pressure on some of members of the Bank's Board of Directors
22:42, 1 December 2020

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The European Union claimed it was concerned about the current level of independence of the National Bank of Ukraine - in spite of the authority's policy of succession. This is mentioned in the annual report on the implementation of the EU-Ukraine Association Agreement. The paper was released on December 1.

"The adoption of a banking resolution law in May 2020 helped to safeguard Ukraine’s financial stability, but the resignation of the Governor of the National Bank of Ukraine (Yakiv Smoliy, - 112 International) in July raised concerns over central bank independence and longer-term monetary and financial stability, an important consideration for Ukraine’s international partners. Legal cases relating to PrivatBank, nationalized in 2016 after allegations of massive (USD 5.5 bn) and unresolved fraud, also continue in Ukrainian and foreign courts, with potentially significant financial implications for the state. In the meantime there has been little progress in criminal prosecution aimed at bringing those responsible to justice", the report says.

Related: Migrant workers’ money transfers to Ukraine in September rise by 5.6%, - National Bank

The EU added that after the change of the NBU Head, three of five members of the Bank's Board of Directors followed him, and the two remaining members - Kateryna Rozhkova and Dmytro Solohub - suffer from political pressure; that includes reprimands for public statements and authority restrictions.

Related: National Bank of Ukraine presents first souvenir banknote with vertical design

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