KYIV, July 13 – Ukraine’s acting governor of the central bank assured investors on Monday that upcoming appointment of the new governor will not change the institution’s policy, which is developed and implemented by a team.

The comment from Kateryna Rozhkova, who is considered as one of possible candidates for the appointment, is aimed at easing investors’ concerns that the National Bank of Ukraine may lose independence.

"The National Bank is not the same as it was six years ago,” Rozhkova said in an interview with Interfax-Ukraine. “Today, the system of collegial decision-making at the NBU is so strong that individuals will no longer be able to manage the central bank manually. This is simply impossible.

The comments come a week after Yakiv Smolii resigned from the post of the governor citing ‘systemic political pressure.’ Smolii was widely credited for streamlining the country’s banking system and maintaining stability in the financial system.

Ukraine was forced to cancel a $1.75 billion Eurobond on July 2 after investors had expressed serious concerns over the resignation of Smolii amid fears the banking reforms will be reversed.

The cancelation of the borrowing plans is a major setback for President Volodymyr Zelenskiy and his government as Ukraine had been struggling with restarting the economy following the outbreak of the coronavirus pandemic.

Rozhkova said the NBU will maintain independence after the governor is appointed, which she said is going to be soon.

"You can't pause and put the NBU's work on hold. Too much depends on the NBU [...] I hope the new head will want to keep our team, given that we have existing contracts and many reforms in various areas that are in the process of implementation," Rozhkova said.

Valeria Gontareva, who was the governor of the NBU in 2014 through 2017 and who lives in London, said last week that the International Monetary Fund should consider shutting down payments to Ukraine in case the authorities refuse to support the NBU’s independence.

IMF head Kristalina Georgieva stated publicly in December 2019 that it would only back further financial aid for Ukraine if the government supported financial reformers. Ukraine received several billion dollars of IMF aid between 2015 and 2019 and was negotiating a new package.

Parliament, with strong support from Zelenskiy’s administration, passed a law in effect guaranteeing the central bank’s reforms on May 13. Nine days later, the IMF announced it had approved a package worth $3.6 billion over the next 18 months. (tl/ez)