Ukraine by late September 2009 should enact legislation to strengthen the overall governance structure of the National Bank of Ukraine (NBU), in particular, reform the NBU council, transforming it into a narrower technical body and revise the NBU Law to eliminate weaknesses, according to a report of the International Monetary Fund (IMF).
The report was prepared jointly with Ukrainian authorities and released on September 9.
The IMF also obliged Ukraine to publish detailed information on banks: In particular, detailed balance sheets and income statements, information on bank capitalization, ownership and asset quality, with separate information for domestic and foreign currency assets and liabilities.
According to the document, the government of Ukraine has to amend the Law of Ukraine “On restoring the solvency of a debtor or announcing him/her a bankrupt” and related laws to facilitate voluntary out-of-court rehabilitation and by reducing the scope for excessive appeals.
In addition, the document notes the need to finalize the resolution strategy for each of the non-systemic problem banks and start its implementation.
The IMF considers Ukraine should initiate the implementation of a reform and restructuring strategy for Naftogaz, including a mechanism for the transparent financing of gas transit modernization, in accordance with the principles of the Brussels declaration.
