EBA calls for continued reforms and independence of Ukraine’s National Bank
This is stated in a statement published on the EBA website in connection with the decision of Governor of the National Bank of Ukraine (NBU) Yakiv Smolii to resign due to "systematic political pressure".
"The European Business Association is deeply concerned about the current situation with the NBU and its governance. Thus, the pressure on the NBU representatives gives a negative signal to foreign investors and companies operating in Ukraine. Therefore, the business community calls on to prevent the rollback of reforms in the financial sector, to follow the ongoing policy and to ensure the continued independence of the NBU," the report reads.
According to the EBA, it is important to have professional NBU governor who will be focused on results and continuation of the reforms. "After all, during the past years, the National Bank ensured significant reduction of inflation, currency liberalization, banking system recovery, etc.," the report noted.
The business community hopes that the authorities understand all the possible consequences of the resignation of the NBU governor and calls on the president to take this situation under personal control. "The business once again emphasizes that the independence of the National Bank, macroeconomic stability and sustainable economic growth in Ukraine must be the government’s unwavering priorities," the Association summed up.
On July 1, NBU Governor Yakiv Smolii submitted a letter of resignation to President Volodymyr Zelensky due to "systematic political pressure".
In turn, the Office of the President of Ukraine assured that the Board of the National Bank will continue its work on the principles of independence and professionalism.
On July 2, President Zelensky tabled in the Verkhovna Rada a motion to dismiss Smolii as NBU governor.
Smolii was appointed NBU governor in March 2018.
The International Monetary Fund (IMF) states that the independence of the National Bank of Ukraine (NBU) after the resignation of NBU Governor Yakiv Smolii must be maintained under his successor.
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