Skip to main content

HFU Newsroom

IMF warns Ukraine over central bank’s independence

Humans aren’t meant to be alone. We’re wired to be together and designed to grow, love and learn with each other. Relationships, whether they are familial, romantic or platonic, allow us to live a well-rounded and happy life. 

We all want our relationships to be positive in our lives, but how do we effectively learn to build these positive and enriching relationships? Here are eight ways:

 

1. Celebrate diversity.

No one is exactly the same. If we were, life would be dreadfully boring. Effective relationship builders realize that not everyone has the same opinions, comes from the same background or has the same goals in life. But it’s these differences that create and foster some of the strongest bonds between individuals. Step out of your comfort zone, ask questions, get to know someone different than you. You might be surprised by how much this can enrich your life. 

 

2. Open your gates to trust.

Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here. 
https://www.ft.com/content/16ca9aee-18ba-4a7b-a83b-2b102b003e1c

The IMF has pressed Ukraine’s president Volodymyr Zelensky to preserve the independence of the central bank as he prepares to appoint a new governor after its previous chief resigned citing political pressure. “It is in the interest of Ukraine to preserve the independence of [the National Bank of Ukraine] and it is also a requirement under the current IMF-supported programme,” said Kristalina Georgieva, IMF managing director, in a statement after speaking with Mr Zelensky by phone on Tuesday evening. “I urged President Zelensky to stay the course of sound monetary and financial policies — those are key to stronger investment and inclusive growth,” she added citing what she described as “an open discussion” on “concerns about pressures being put” on the central bank. Ms Georgieva’s comments sent a clear signal that a $5bn IMF programme agreed last month hangs on Kyiv’s handling of the central bank crisis.  “The IMF reads the riot act to Zelensky about maintaining central bank independence — reading between the lines — no more money unless they choose a decent governor,” Timothy Ash, analyst at BlueBay Asset Management, wrote in a note to investors. Ukraine’s latest IMF lifeline is crucial to stabilising its public finances during a deep recession triggered by a coronavirus lockdown. Continued co-operation with the IMF is also a precondition for billions of dollars of additional financing from the EU, World Bank and other financial institutions. Their financial backing has propped up Kyiv ever since Russia in 2014 annexed the Crimean Peninsula and fomented a proxy separatist war in the east of the country. Mr Zelensky said he would name a candidate to head the central bank for parliamentary approval by the end of this week. “It will be an independent technocrat who will continue the independent course of the National Bank,” he said. “I make all decisions only in the interests of the people of Ukraine . . . discussions on the activities of the National Bank of Ukraine should be deprived of political colour, which may have a negative impact on the institutional capacity and independence of the regulator,” added Mr Zelensky. Hours after Yakiv Smolii resigned as central bank governor on July 1 citing “systemic political pressure,” Ukraine’s finance ministry pulled a $1.75bn bond placement. It had earlier hoped to capitalise on positive sentiment after receiving the first disbursement of $2.1bn from the IMF programme. Mr Smolii, who found coffins placed outside his residence after his resignation, has claimed he and his staff have repeatedly faced personal threats.  MPs loyal to oligarch Igor Kolomoisky, who backed Mr Zelensky’s presidential campaign last spring, had repeatedly called for Mr Smolii’s removal.  Mr Kolomoisky has issued multiple legal challenges against the 2016 nationalisation of top commercial lender PrivatBank, which he and partners lost control of after the central bank identified a $5.5bn hole in its balance sheet.

Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T&Cs and Copyright Policy. Email licensing@ft.com to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here. 
https://www.ft.com/content/16ca9aee-18ba-4a7b-a83b-2b102b003e1c

After months of delay, Ukraine earlier this year met IMF conditions for a fresh loan programme by adopting banking sector legislation. It aims to prevent Mr Kolomoisky and former owners of other banks liquidated or nationalised in the clean-up from reclaiming ownership or obtaining compensation through the country’s corrupt court system.  The PrivatBank case is part of a broader IMF-backed banking sector overhaul, the importance of which Ms Georgieva pointed to in her phone call with Mr Zelensky. “The successful clean-up of the financial sector, which was ravaged by fraud, is also credit to the supervisory work of the NBU,” she said. “The credible policy actions of the NBU have been instrumental in stabilising the economy,” she added. Upon resigning, Mr Smolii said independence of the central bank was also threatened by pressure from both government officials and legislators who have called for eased monetary policy. Their call for lower lending rates and a devalued currency to provide a boost for exporters was echoed this month by Mr Zelensky. “We support independence of the National Bank of Ukraine, but we have told all — that how are we to live when even our budget envisions a currency exchange rate of 30 [to the US dollar], but you see where our hryvnia is.” Ukraine’s hryvnia currency is currently valued at about 27 to the US dollar.

Powered by Firespring