EU still concerned about NBU independence, despite continued policy
The European Union remains concerned about the independence of the National Bank of Ukraine (NBU), despite the continuity of the regulator's policy, according to the EU's annual Association Implementation Report.
"The Governor of the NBU tendered his resignation on July 1, 2020, citing 'systematic political pressure,' preventing him from fulfilling his duties. The EU and Ukraine's international partners issued statements urging the authorities to ensure and maintain the independence of NBU and its competent management of monetary policy. Three of the remaining five members on the NBU Board have since been replaced following their resignation or non-renewal of their mandates. The two remaining Board members have come under pressure to resign, including through reprimands for speaking in public and a downgrading of the First Deputy Governor's responsibilities. While the NBU has shown a high degree of policy continuity, concerns about the independence of the institution remain," according to the EU report.
"The adoption of a banking resolution law in May 2020 helped to safeguard Ukraine's financial stability, but the resignation of the Governor of the National Bank of Ukraine in July raised concerns over central bank independence and longer-term monetary and financial stability, an important consideration for Ukraine's international partners," it says.