Financial experts have estimated the possible consequences of his resignation.
Zelensky was required from the NBU more money for the economy. Smoliy believed that it carries the risk of macro stability. For which he paid, reports the Chronicle.info with reference to League.no.
On the evening of 1 July, the head of the National Bank Yakov Smoliy said that he had written a resignation at own will. The reason is the “systematic political pressure.” President Vladimir Zelensky will likely sign the statement of the head of the NBU.
Resin decided to write a statement after a meeting of the national Council of reforms(June 30), on which he had a conflict conversation with Zelensky, tell two people (one of them was at the meeting).
Today (July 2) resignation Smoliy will consider the relevant Committee, and on July 3, the Verkhovna Rada can reclaim the chair of the head of the national Bank. According to one of deputies of SN members of the Finance Committee received from the Office of the President recommendation to accept the resignation.
Resignation of head of the NBU there is more important for the welfare of all Ukrainians news from Zelensky his vision of how to help and develop the Ukrainian economy. It is strongly at odds with the idea of the sound economic policies of the current leadership of the NBU.
What happened. Chronicle of resignation Smoliy
“My term in office ends in 2025. There is still time and a lot of tasks that we need to implement,” so Yakov Smoliy commented on the possibility of his resignation in may – just six weeks before to write a letter of resignation because of a “systematic political pressure.”
“My retirement I want to warn against further attempts to undermine the institutional framework of the Central Bank in Ukraine,” – said resin.
His deputies (Kateryna Rozhkova, Dmitry Sologub Oleg Churiy, Roman Borisenko) are still in their places. “We share warnings about pressure, but committed so far to continue the work to preserve macro-financial stability”, – said in a joint statement management of the NBU.
The resignation Smoliy must be approved by the President, and then – the Verkhovna Rada. In the Office of the President (OP) has not yet reacted to the decision of the head of the NBU, but noted that the independence of the national Bank remains “an absolute priority” for the President. Also, in the OP stressed that discussions on the regulator “should not acquire political overtones”.
“The government and the NBU will continue a prudent fiscal and monetary policies to ensure macro and financial stability and will contribute to the development of the economy and the resumption of Bank lending,” – said in a statement the Office of the President.
What’s next. The decision Zelensky and the candidates to replace the Smoliy
Despite the neutral tone of the press release OP, Zelensky, most likely, will accept the resignation Smoliy, says the source in the leadership of the faction servant of the People.
The vote on the “question of the NBU” in the Parliament is scheduled for July 3rd. “The only question is, is time to make all of the rules until Friday,” says the source.
The name of the probable candidate to replace the Smoliy also known – Kirill Shevchenko, head of the state Ukrgasbank, said the source from the faction of the servant of the people. Similar information was also voiced by the Deputy head of finkomitet Yaroslav Zheleznyak (Voice). The interviewee from the office of the President noted that we are really talking about the current head of the state Bank, however, did not specify his name.
The new head of the NBU will be able to enter the Board, at least one his man: July 10, ending the powers of Oleg Churia (in charge of the currency bloc). At the meeting on 30 June, the Council of the national Bank, which appoints the members of the Board, refused to consider the question of a new term Cure, although resin recommended to leave it in the Bank for another seven years.
Why resin leaves. The conflict, Saakashvili, and “a different economic paradigm Zelensky”
Why Yakov Smoliy decided to retire right now?
The trigger to writing the application was a very intense conversation that occurred between him and the President Zelensky at the meeting of the national Council of reforms (the same, which is headed by Mikheil Saakashvili) on Tuesday, June 30, said three of the interlocutor, who witnessed the conflict.
The President did not like the poor results of the state program of cheap loans 5-7-9. Claims that the banks parties to give a little credit, he made it Smoliy, and bluntly, says one of the interlocutors.
“5-7-9 is an old claim. Zelensky was expressed by her back in January: high rate, due to which the NBU does not give course credit, tells the source of leadership CH. And in General, the President is in a different economic paradigm. A resin with its inflation targeting during the crisis is a so-so story.”
What does “a different economic paradigm” Zelensky? “Money is the lifeblood of the economy, they need more; drying the economy – is impossible; the rate is slightly lower, etc.” – lists the source.
Normally would not. The printing press, the fall of the hryvnia and “financial isolation”
The news of the resignation Smoliy appeared a few hours after Ukraine finished first after the introduction of quarantine to place Eurobonds on $1.75 billion Deal was closed, said the source in one of the largest investment companies, has bought Ukrainian government bonds. “Smoliy did not disappoint, the Ministry of Finance, a decent man,” says the investment banker.
Had retired a little earlier, a “window of opportunity” for Ukraine, probably, would be closed, says a financier of other large Ukrainian companies. At the same time, chief economist at Dragon Capital Elena Belan does not exclude that the transaction may be cancelled. This opinion is shared by a senior official of the Ministry of the economy, he said the placement will be canceled.
All of the surveyed financiers negatively perceived care Smoliy. The main concern – national Bank will loose its independence that will harm Ukraine’s relations with foreign investors and partners.
Local business is also not enthusiastic. “We will postpone new investments, – said General Director of Dragon Capital Tomas Fiala. – This is the last straw. We can only guess what the reasons for that decision: complete incompetence or motivated Russian sabotage”.
The first practical reaction will occur in the currency and financial markets today. “I don’t know what tomorrow will quotations of the bonds, what will be the course, but I can say that such a move would have negative consequences for Ukrainian economy and for attracting investments”, – says ex-Deputy Minister of economy Pavlo Kukhta.
According to the former CEO of Raiffeisen Bank Aval Volodymyr Lavrenchuk, Ukraine, probably, will change the strategy and monetary policy of the NBU. “It is about using the scale of money creation for budget needs and minimize the interaction with the IMF,” he said.
It adds Bilan of Dragon Capital, Ukraine may find themselves in “financial isolation”.
“Further developments will depend on the actions of the President, – she said. – If the resignation Smoliy will be adopted, and the NBU will appoint a Pro-governmental leadership, in addition to the economic one, we will soon find ourselves on the threshold of the financial crisis.”