The IMF said the terms of lending to Ukraine after the resignation Smoliy
After the resignation Smoliy as head of the NBU, the IMF stressed the importance of a responsible Central Bank policy.
To continue cooperation with the IMF, Ukraine needs to preserve the independence of the national Bank, not to depart from the principles of inflation targeting and floating exchange rate. This was stated by the representative of IMF in Ukraine Jost Longman in an interview LIGA.net Thursday, July 9.
“The program is based on these parameters. We are convinced that the management model of Central Bank and control system of monetary and financial sector correspond to the economic interests of Ukraine”, — said Longman.
In addition, Longman explained why the Central Bank should be independent.
“We know that prudent monetary, monetary and financial policy have an extremely positive impact on long-term economic development. But we also know that sometimes a good policy is unpopular, and some politicians try to encourage fast growth,” he said.
Finally, he stressed that “the irresponsible policy of the Central Bank in the end leads to high inflation, currency instability, problems in the financial sector, low economic growth and high unemployment, as we have seen during the past crises in Ukraine”.
We will remind that earlier Ukraine has fulfilled the requirement of the IMF loan. State banks at the request of the IMF will reduce the share of non-performing loans. Also consider the Deposit insurance system.
Also Smigel told about the reaction of the IMF to care Smoliy. Ukraine will continue cooperation with the IMF and the European Union, the Prime Minister said. He is also confident in the stability of the hryvnia after the resignation of the head of the NBU.