In IMF talks, Ukraine leader promises probe into banking abuses
Reuters
Published Sep 20, 2019 03:52PM ET
In IMF talks, Ukraine leader promises probe into banking abuses
By Matthias Williams (NYSE:WMB)
KIEV (Reuters) - Ukraine's President Volodymyr Zelenskiy on Friday at a meeting with the International Monetary Fund promised to safeguard the central bank's independence and supported a comprehensive investigation of abuses in the banking sector.
Zelenskiy's reassurances come after a turbulent few days in Ukraine where the central bank said reformers in the country were being subjected to "terror" after a property belonging to a former central bank governor was set ablaze.
IMF officials are visiting Ukraine for talks on a new loans-for-reforms program to replace a $3.9 billion stand-by deal that expires next year.
The exact terms and size of the new program have not been publicly disclosed yet, but a senior central bank official previously said the size could be $6 billion.
IMF loans have helped stabilize Ukraine after Russia's annexation of Crimea in 2014 and the outbreak of fighting in the eastern Donbass region that has killed more than 13,000 people.
A statement published on the presidential website also said Zelenskiy and senior IMF officials discussed PrivatBank, Ukraine's largest lender, and energy sector reforms.
"I assure my full support for structural reforms in the economy, independence of the National Bank and the comprehensive investigation of abuses in the banking sector," Zelenskiy said according to the statement.
He did not specify which abuses he was referring to.
The IMF has not commented on its talks with the government so far.
PrivatBank was taken into state hands against the wishes of its ex-owner, Ihor Kolomoisky, in 2016 and its fortunes are closely watched by investors because the IMF could freeze aid if the nationalization is reversed.
Zelenskiy, who has longstanding business ties with Kolomoisky, has demanded an investigation after the home of former Central Bank Governor Valeria Gontareva, responsible for nationalizing the bank, was torched in a night-time attack.
As part of an IMF-supported clean-up of Ukraine's financial system, the authorities nationalized PrivatBank saying the lender had a $5.6 billion hole in its balance sheet due to shady lending practices. Kolomoisky disputed this assessment.
Zelenskiy has denied suggestions that he would help Kolomoisky regain control of PrivatBank or win compensation.
Get The News You Want
His new Prime Minister Oleksiy Honcharuk on Tuesday in a text message to Reuters denied an earlier newspaper report about a potential settlement, saying he was not holding talks with Kolomoisky. But Kolomoisky told Reuters by phone he believed the government was looking for a compromise.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.