Page 15 - UKRRptJul20

The NBU said the decision to cancel the issue, only hours after the order book had been closed, was the need for investors to evaluate the news about the resignation of the head of the NBU.
"Given the unexpected announcement of the resignation of the Chairman of the National Bank of Ukraine, Yakiv Smolii last night [on July 1], The Ministry of Finance of Ukraine this morning decided to cancel the previously announced offers of Eurobonds and exchanges in order to provide investors with enough time to evaluate this news,” Minister of Finance Serhiy Marchenko said.
"An extraordinary event happened yesterday [on July 1]. It was shocking and disrupted our transaction of the decade. I am not afraid of that word. Because the profit we could make from yesterday was last gained in 2007-2011,” Marchenko said in a television interview.
The International Monetary Fund (IMF) also released a statement emphasising the independence of the NBU was essential for its relation with Kyiv. The IMF was already clearly concerned about the ongoing attacks on the NBU by Kolomoisky when it signed off on the​ ​$5bn Stand By Agreement (SBA) agreed on June 9​, as ​bne IntelliNews ​highlighted in a comment, “​Here is the money but we don't trust you​.”
Within days of the first tranche of the new deal arriving in Kyiv two Rada deputies from the Servant of the People (SOTP) fraction, but associated with Kolomoisky, introduced a bill that would increase the government’s control over the NBU that the IMF and EU objected to. Now with Smolii’s departure those fears have only heightened.
“Under [Smolii’s] leadership, Ukraine has made important strides in achieving price stability, amply demonstrating that an independent central bank is a key element of modern macroeconomic policymaking,” an IMF spokesman said in a statement on July 2.
Likewise the ambassadors of the G7 states issued a statement commenting on the news.
“An independent National Bank is a foundational achievement for Ukraine that has reduced corruption, driven growth and rescued a failed banking sector. To undermine this crucial institution would be a big step back and jeopardize the credibility of and support for Ukraine‘s reforms,” the G7 statement said.
The EU added its voice to the throng, which has been strongly supportive of Ukraine, having just transferred $500mn under it macro-stability support programme immediately after the SBA was done.
The EU warned Smolii’s resignation is a "worrying signal" and that the Union stands for an independent role of the National Bank.
Peter Stano, the Lead Spokesperson for Foreign Affairs and Security Policy, said in a statement on July 2: "The announcement of the resignation of the Governor of the National Bank of Ukraine, Yakiv Smolii, against the backdrop of alleged political pressure sends a worrying signal. The Bank must maintain its ability to fulfil its role independently. Undermining this important institution jeopardises the credibility of and support for Ukraine’s reform agenda.
15​ UKRAINE Country Report​ July 2020 ​ ​www.intellinews.com