EU backs Ukraine central bank independence against state pressure

Business

6 November, 09:29 PM

The European Union expects Kyiv to follow clear legal procedures when it comes to the tenure of National Bank of Ukraine (NBU) Governor Andriy Pyshnyy, Katarina Mathernova, head of the EU Delegation to Ukraine, said on Nov. 6.

Mathernova’s remarks were broadcast by European HUB via Facebook.

“I believe the independence of the National Bank is one of the key elements not only of Ukraine’s monetary sovereignty but also of its sovereignty as a whole, along with many other independent institutions,” she said.

“The National Bank’s independence is extremely important, above all, for financial stability.”

She said there had been no instances of financial instability or panic among depositors during the full-scale war. Ukrainian banks have closed only because of power outages, she said, rather than because of systemic problems.

“That is why I believe that the minister, his team at the Finance Ministry, the government team, and the governor and team at the National Bank have done a commendable job,” Mathernova added.

“We remain in constant contact with both sides because the EU is the largest donor and largest partner, including on issues related to regulation of the financial system.”

Mathernova said any action involving the NBU governor must comply with current legislation.

“I believe the National Bank law clearly defines the grounds for dismissal, and I very much hope that the laws will be followed,” she said.

“This is the fundamental principle of joining the EU — the rule of law.”

Mathernova also said that G7 ambassadors in Ukraine had met to discuss the issue amid Pyshnyy’s statements about political pressure and attempts to remove him from office.

A draft resolution on dismissing Pyshnyy appeared on the agenda of the Verkhovna Rada, Ukraine’s parliament, for the Nov. 9-13 plenary week.

Pyshnyy said he had not submitted a resignation letter and “has no intention of leaving office under political pressure.” He linked the public discussion of his possible resignation to “prolonged political pressure, manipulation, and a deliberate, coordinated campaign to discredit” him.

Інші новини

Все новости