WASHINGTON, July 14 – The International Monetary Fund warned Ukraine on Tuesday that independence of the central bank is a requirement for the country to receive installments from $3.6 billion loan program approved in May.

Kristalina Georgieva, the Managing Director of International Monetary Fund, spoke with President Volodymyr Zelenskiy on Tuesday amid growing concerns of political pressure on the National Bank of Ukraine (NBU).

“I had an open discussion today with President Zelenskiy on concerns about the pressures being put on the NBU,” Georgieva said in a statement released after the call.

“It is in the interest of Ukraine to preserve the independence of NBU and it is also a requirement under the current IMF-supported program,” Georgieva said. “I urged President Zelenskyy to stay the course of sound monetary and financial policies – those are key to stronger investment and inclusive growth.”

The comments is the strongest indication yet that the IMF may suspend the $3.6 billion loan if Ukraine appoints the new governor of the NBU that is not committed to maintaining independent financial policy.

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

Zelenskiy is expected to nominate the candidate for the governor post later this week, but there was little information available over any candidates that may be considered.

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

The NBU’s work under Smolii was praised by Georgieva.

“The reform of the NBU and its performance over the past five years is a clear success story for Ukraine,” Georgieva said. An independent central bank helps macroeconomic stability, supports investors’ confidence, and protects the financial system—all crucial preconditions for investment and growth.”

“The credible policy actions of the NBU have been instrumental in stabilizing the economy,” she said. “The successful clean-up of the financial sector – which was ravaged by fraud – is also credit to the supervisory work of the NBU.”

Immediately after Smolii’s resignation, Ukraine was forced to cancel a $1.75 billion Eurobond on July 2 after investors had expressed serious concerns amid fears the banking reforms will be reversed. (tl/ez)