Page 8 - UKRRptFeb19

Earlier this year, Sytnyk was involved in a bitter conflict with head of another Ukraine's anti-corruption body, the Specialised Anti-Corruption Prosecutor's Office (SAPO) Nazar Kholodnytsky. NABU accused the latter of alleged law violations during criminal investigations.
At the same time, Sytnyk was forced to reject accusations of wrongdoing after he reportedly visited the president’s private home for a late night meeting , which was slammed by local experts as a move, which "creates enormous suspicions and casts doubts on Sytnyk’s integrity".
2.2 Ukraine agrees to details of new IMF deal
Ukraine published on December 20 part of its memorandum with the IMF on its new stand by program, revealing its commitments under the program and structural benchmarks necessary for its successful completion.
That document was almost immediately removed from MinFin’s website after its officials learned that the IMF had not published its version of the document, which should be published first. Therefore, the document can be only considered as a draft memorandum, but we believe the IMF’s version won’t differ.
In general, Ukraine has committed to continue implementing a weighted monetary policy with inflation targeting at flexible exchange rates, implying the National Bank's institutional independence. It sets annual inflation targets at no more than 7% in 2019 and 6% in 2020. It calls for continuing structural reforms, improving the business climate and continuing fiscal consolidation, with the budget deficit-to-GDP ratio not exceeding 2.25% in 2019.
Ukraine will have eight new structural benchmarks for securing the next loan tranches.
1) The state regulator will have to increase heating rates in line with rising natural gas prices for at least 95% of heating companies by the end of 2018.
2) The NBU is committed to amending the regulatory capital methodology for banks in order to eliminate excessive related party lending by the end of 2018.
3) The NBU should use the necessary measures to deal with banks whose CAR remains below the 10% norm by end-June.
4) MinFin should start regularly reporting on the progress of bad loan recovery of state banks, starting in March.
5) Parliament should approve a law to split the State Fiscal Service into a separate Tax Service and Customs Service, both to be subordinated to MinFin by April.
6) Parliament should approve a law designating all authority to regulate financial markets to the NBU and State Securities Commission.
7) At least 35 judges with perfect reputations should be elected to the High Anti-Corruption Court, by April.
8 UKRAINE Country Report February 2019 www.intellinews.com