The vote on the bill on improvement of banking regulation mechanisms in the Verkhovna Rada of Ukraine will be a key moment that will determine Ukraine's future – whether it will be under the oligarchs’ rule or in the Western-backed civilized environment reformed according to the European standards, as the ex-U.S. special representative for Ukraine negotiations Kurt Volker wrote in the article for the Center for European Policy Analysis (CEPA).
“Ukraine’s Parliament will face a moment of truth when it meets. As the novel coronavirus increasingly impacts the country, the Rada must finally pass the banking legislation necessary to free up $8 billion in IMF funding, and a further $1.5 billion from other sources,” he wrote.
The expert explained that the Verkhovna Rada must approve banking legislation that prevents the return of nationalized banks to former owners, or ban the payment of compensation to those former owners.
“Ukrainian taxpayers already paid once when bailing out the bank after those former owners could not account for billions of dollars. Neither the Ukrainian taxpayers, nor the international financial institutions standing behind them, should pay anything more,” Volker stated.
However, according to him, the IMF, the World Bank, and the EU are ready to help Ukraine through the crisis.
“The IMF has boosted its package from $5 billion to $8 billion, the World Bank is offering $1 billion, and the EU a further $500 million. At least $2 billion would be disbursed quickly by the IMF, making funds available almost immediately to fight the coronavirus. Without such financial assistance — and the seal of good housekeeping the IMF package represents — Ukraine’s financial position would fall even faster than it is falling today,” Volker emphasized.
As we reported before, an extraordinary meeting of the Verkhovna Rada of Ukraine will be held on Monday, April 13.
