IMF leader tells Ukraine's president to keep central bank independent

The International Monetary Fund on Tuesday appealed directly to Ukraine’s president to maintain the independence of the country’s central bank after its governor quit July 1, complaining of "systematic political pressure."

Censor.NET reports citing Ukrinform. 

The IMF’s managing director, Kristalina Georgieva, issued a statement about what she called an "open discussion" with Ukrainian President Volodymyr Zelenskyi on "concerns about the pressures being put on the National Bank of Ukraine (NBU)."

Georgieva said she told Zelenskyi that Ukraine was required to preserve the central bank’s independence under the terms of a $5 billion IMF program finalized weeks ago to help fight an economic slump caused by the coronavirus pandemic.

Zelenskyi, who had called for the central bank to cut interest rates, on Tuesday said he assured Georgieva that he would nominate a new central bank chief by the end of this week and said that person would be an independent technocrat.

National Bank of Ukraine Governor Yakiv Smoliy quit on July 1 shortly after Ukraine signed the IMF program, complaining that the president’s office had tried to push him into cutting interest rates too quickly and letting the hryvnia devalue.

Read more: Zelenskyi presents resolution on dismissal of National Bank’s chief to Verkhovna Rada

His exit rattled financial markets, forcing the government to abort a 12-year Eurobond placement worth $1.75 billion and raising concerns that the IMF and other lenders would freeze loans.

Georgieva’s telephone call with Zelenskyi followed stern comments by the IMF’s country representative last week.

"It is in the interest of Ukraine to preserve the independence of NBU and it is also a requirement under the current IMF-supported program," Georgieva said. "I urged President Zelenskyi to stay the course of sound monetary and financial policies – those are key to stronger investment and inclusive growth."