The new head of the national Bank of Ukraine must continue the policy of its predecessor – the IMF

Новый глава Нацбанка Украины должен продолжать политику предшественника - МВФ

The international monetary Fund expects the new head of the National Bank of Ukraine will continue the policies of his predecessor Yakov Smoliy. In an interview with LIGA.net said IMF resident representative in Ukraine Jost Longman.

“We believe that the management and staff of the NBU has effectively implemented prudent monetary and fiscal policies, and it is important that this policy was continued under a new Chapter,” said he.

According to Longman, balanced policy of the Central Bank has “an extremely positive impact on long-term economic development.”

“But we also know that sometimes a good policy is unpopular, and some politicians seek to stimulate rapid growth. However, the irresponsible policy of the Central Bank in the end leads to high inflation, currency instability, and problems in the financial sector, low economic growth and high unemployment, as we have seen during the past crises in Ukraine”, – said the permanent representative of the IMF, pointing to the importance of preserving the independence of the NBU.

He added that Ukraine has created “a system ensuring the independence of the Central Bank in accordance with the best international practice in 2015”.

“This system has served as Ukraine and contributed to the rapid recovery and growth of the economy. But in order for this model to work, the Central Bank needs to feel confident that he can make difficult but necessary decisions without politically motivated consequences, that the political establishment will protect the independence of the Central Bank when his actions questioned, and Central Bank independence will be respected and the letter and spirit of the law”, – said Longman.

According to him, the statements of the former head of the NBU about the political pressure “should worry everyone.”

Jacob Smoliy, the head of the national Bank 2018, was dismissed July 3. Now the post of the acting head of the national Bank is his first Deputy Ekaterina Rozhkova.

The head of the regulator filed July 1, resigned because of a “systematic political pressure on the NBU” on the part of the authorities. Speaking in Parliament before retiring, he stated that he was required to make economically unjustified decisions that could damage the Ukrainian economy.

The President of Ukraine Vladimir Zelensky said that he has already held consultations with representatives of state and commercial banks of Ukraine and NBU Board formed three lists of candidates for the post of head of the national Bank.

Vladimir Zelensky

Share