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Business urges against undermining NBU independence

23/ 06/ 2020

Last week, the parliamentary committee on finance, tax, and customs policy endorsed a draft resolution on the evaluation of the NBU Governor’s performance. The document criticized the NBU’s activity since 2014 and recommended setting up a temporary commission to investigate the work of the National Bank and the Deposit Guarantee Fund between 2014 and 2019.

This development sends a very disturbing message to both the business community and investors. It also questions the principles of objectivity and impartiality that a civilized European country must adhere to.

The business community is concerned about this situation and supports the statement by the G7 ambassadors that enshrining independence of the NBU was one of the most important reforms in Ukraine that helped achieve macro-financial stability, overcome a severe banking crisis, and restore public confidence in the banking sector. Moreover, in 2019, as part of the Investment Attractiveness Index Survey, the CEOs of EBA member companies highlighted the liberalization of currency legislation, hryvnia stability, and low inflation among the major positive changes in Ukraine’s business climate.

Thus, building an equitable, independent and professional financial system in the country must be a firm priority for the government, and NBU independence is one of its key elements.

Therefore, the European Business Association calls on the President of Ukraine, the Government, and the Verkhovna Rada to prevent attempts to undermine NBU independence and thereby forestall the emergence of new negative factors threatening to destabilize the economy and depress investment activity and economic growth.

 

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