Apparently, the Ukrainian National Bank continues to be under political pressure after the change of four out of six board members. The first deputy head of the National Bank, Kateryna Rozhkova, was removed from the leadership of banking supervision. Her colleague Dmytro Sologub warned on Twitter that this could negatively affect negotiations with the International Monetary Fund to provide the next tranches as part of a $ 5 billion financial assistance package.
Rozhkova was instrumental in the problematic banking reform pushed for by the IMF. One of the provisions of the reform was the refusal to return PrivatBank to one of the oligarchs, saved from collapse by state money.
How critical international investors are of Ukraine is shown not only by the chronically weak exchange rate of the national currency, the hryvnia. Last week, the state-owned energy concern Naftogaz unexpectedly canceled the issue of Eurobonds worth more than 500 million euros (in fact, dollars - editor's note).
"International investors are more and more concerned about the political and operational situation in Ukraine," this is how the concern's press service substantiated this decision. He intended to pay up to 9.25% on Eurobonds, the maturity of which was calculated by the end of 2026. Especially "Naftogaz" pointed to "the development of relations with the IMF."
In addition to the independence of the Central Bank, the IMF believes it is necessary to strengthen institutions that fight corruption. Observers in this area note the deterioration of the situation. When American businessman and former diplomat Amos Hochstein recently left Naftogaz's supervisory board, he urged the government to ensure the independence of the supervisory bodies of state-controlled enterprises.
The financial and political concern is also caused by the budget deficit planned by Kyiv for 2021 in the amount of 6% of GDP. "Given that the government expects 4.6% growth, this budget deficit is too large," says Robert Kirchner of the German expert group on Ukraine, which advises the country on instructions from the German federal government.
Read the original text at Frankfurter Allgemeine Zeitung