The reaction of the business community to the resignation of the NBU Governor

02/ 07/ 2020

Yesterday, it became known that Yakiv Smolii, Governor of the National Bank of Ukraine, submitted his letter of resignation to Volodymyr Zelensky, President of Ukraine, citing systematic political pressure. The European Business Association is deeply concerned about the current situation with the NBU and its governance. Thus, the pressure on the NBU representatives gives a negative signal to foreign investors and companies operating in Ukraine, as the security, justice, and equality now can be put under question. The business once again emphasizes that the independence of the National Bank, macroeconomic stability and sustainable economic growth in Ukraine must be the governments unwavering priorities. A transparent, stable, and competitive financial sector is an important component of national economic growth and macroeconomic stability. Thus, clear, comprehensible, and consistent policies ensure a higher level of confidence among both business representatives and potential investors, which is an essential condition for achieving ambitious development goals. Therefore, the business community calls on to prevent the rollback of reforms in the financial sector, to follow the ongoing policy and to ensure the continued independence of the NBU. Besides, it is important to have professional NBU Governor who will be focused on results and continuation of the reforms. After all, during the past years, National Bank ensured significant reduction of inflation, currency liberalization, banking system recovery, etc. Therefore, the business community hopes that the authorities understand all the possible consequences of the resignation of the NBU Governor and calls on the President of Ukraine to take this situation under personal control. First and foremost, it is important to protect the country from the emergence of new negative factors that destabilize the economy, slow down investment activity, and economic growth, especially in a crisis that has arisen in connection with the pandemic. Ultimately, we hope that the voice of business will be heard, and the country will be able to avoid irreparable negative consequences!

The European Business Association is deeply concerned about the current situation with the NBU and its governance. Thus, the pressure on the NBU representatives gives a negative signal to foreign investors and companies operating in Ukraine, as the security, justice, and equality now can be put under question.

The business once again emphasizes that the independence of the National Bank, macroeconomic stability and sustainable economic growth in Ukraine must be the government’s unwavering priorities.

A transparent, stable, and competitive financial sector is an important component of national economic growth and macroeconomic stability. Thus, clear, comprehensible, and consistent policies ensure a higher level of confidence among both business representatives and potential investors, which is an essential condition for achieving ambitious development goals.

Therefore, the business community calls on to prevent the rollback of reforms in the financial sector, to follow the ongoing policy and to ensure the continued independence of the NBU. Besides, it is important to have professional NBU Governor who will be focused on results and continuation of the reforms. After all, during the past years, National Bank ensured significant reduction of inflation, currency liberalization, banking system recovery, etc.

Therefore, the business community hopes that the authorities understand all the possible consequences of the resignation of the NBU Governor and calls on the President of Ukraine to take this situation under personal control. First and foremost, it is important to protect the country from the emergence of new negative factors that destabilize the economy, slow down investment activity, and economic growth, especially in a crisis that has arisen in connection with the pandemic.

Ultimately, we hope that the voice of business will be heard, and the country will be able to avoid irreparable negative consequences!