IMF recommendations to be taken into account in draft law on improving corporate governance in banks – NBU

Experts of the International Monetary Fund (IMF) have provided the National Bank of Ukraine with their recommendations on strengthening the institutional capacity and management in the National Bank, in terms of powers of the NBU Council, head of the National Bank of Ukraine Kyrylo Shevchenko said.

"The recommendations will be taken into account when developing a draft law on improving corporate governance in banks, which was agreed with the IMF experts and submitted to parliament in November 2020," he told Interfax-Ukraine on Saturday, commenting on results of the Fund's mission.

The head of the NBU also said that this bill will be an important step towards further strengthening the independence of the National Bank.

Shevchenko reported that these issues do not delay the signing of the agreement with the fund.

He said that the National Bank had very productive discussions with the IMF mission on the completion of the first review of the stand-by arrangement. "We were able to discuss all the issues on our agenda with representatives of the mission in the first weeks of its work. We found complete mutual understanding on these positions, and today I can state that the National Bank is on the same page in negotiations with our international partners," the head of the NBU said.

As reported, head of the IMF office in Ukraine Goesta Ljungman announced on Saturday the completion of the mission on the first review of the stand-by arrangement, which had lasted since the end of last year, without recommending a second tranche. According to him, additional discussions and more progress from Ukraine are needed.

The adoption of this banking bill was previously indicated as one of the conditions for provision of the second tranche. However, in addition to this, according to the Interfax-Ukraine agency, it is also necessary to adopt a law on the High Council of Justice, progress in the anti-corruption sphere, refusal to return to price regulation in the energy sector, as well as greater clarity regarding the 2022 state budget and the audit of the COVID Fund.

Source: www.en.interfax.com.ua