Ukraine leader goes to court over cbank resolution

15:31, 27 January 2009
625 0

That rescinded the appointment of the central bank chairman

Ukrainian President Viktor Yushchenko said on Tuesday he would ask the constitutional court to review a parliament resolution that rescinded the appointment of the central bank chairman, Reuters reported.

His political opponent, Prime Minister Yulia Tymoshenko, said late on Monday she supported the parliament`s resolution and urged Yushchenko to find a new candidate for the post.

The resolution, passed by the narrowest of margins, was the third attempt to sack Central Bank Chairman Volodymyr Stelmakh. Tymoshenko and her faction in the chamber blame him for the sharp fall in the hryvnia currency in late 2008.

"Today, I will send to the constitutional court arguments on the constitutional and legal basis of the decision taken yesterday," Yushchenko said in a statement.

Only the president can initiate the dismissal of the central bank chief, by proposing the motion to parliament for approval. His office on Monday called parliament`s resolution "illegal and unconstitutional".

Yushchenko, while lukewarm towards the bank, has rejected previous calls to dismiss Stelmakh.

The hryvnia began to weaken rapidly in September and by December lost half of its value against the dollar, as exports dropped and the financial crisis began to take hold.

After almost daily interventions from the central bank the hryvnia strengthened from the historic lows of 9.5-10/$ in December. It was quoted at 8.05-8.15 on Tuesday, little changed from Monday.

Reuters
If you see a spelling error on our site, select it and press Ctrl+Enter