IMF names conditions of cooperation with Ukraine after chief banker's exit

03:55, 10 July 2020
Economy
569 0
REUTERS

The Ukrainian government should stick to the current model of management at the National Bank of Ukraine (NBU), as well as it should not deviate from the principles of inflation targeting and a floating exchange rate if it wants to secure the remaining part of the International Monetary Fund's disbursement after NBU Governor Yakiv Smolii's exit.

"The Fund has been supporting Ukraine in developing a well-balanced framework for NBU independence and accountability. We are also convinced that the central bank governance model and the monetary and financial sector policy framework serves Ukraine's economic interests," IMF Resident Representative in Ukraine Goesta Ljungman said in an interview for Liga.net.

Read alsoUkraine's parliament backs chief banker's exit

"But in order for this model to work, the central bank must feel confident that they can take difficult – but necessary – decisions without politically motivated repercussions," he said.

"The central bank's independence is not just an abstract, theoretical concept that can be bent and twisted to fit any reality. There are well-established links between central bank independence and economic performance," he added.

As UNIAN reported earlier, the Verkhovna Rada, Ukraine's parliament, on July 3 backed President Volodymyr Zelensky's motion to dismiss NBU Governor Yakiv Smolii.

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