Economy 2022-08-15T07:45:11+03:00
Ukrainian news
The expert explained the real reason behind the dismissal of Serhii Rybalka

The expert explained the real reason behind the dismissal of Serhii Rybalka

Dmitriy Marunich, Serhii Rybalka
Dmitriy Marunich. Photo:
Dmitriy Marunich. Photo:

Ukraine might end up without the financial assistance of the West since it is not complying with its obligations on many economic reforms.

Co-Chair of the Energy Strategies Fund, economic expert Dmitriy Marunich wrote about this in his blog. 

He reminded that, recently, Ukraine has lost the opportunity to obtain 600 million euros in financial assistance from the EU, and that Kyiv’s approach to the reforms process was criticized in the latest Eastern Partnership Summit. The World Bank, EBRD, U.S. Embassy and IMF have expressed similar concerns to our government officials during informal meetings. 

Among such unfulfilled obligations, for instance, has been the creation of a credit registry of troubled borrowers in order to better identify crooks and cease the continuous growth in the amount of the non-preforming loans. "The government promised to create it back in 2015. The obligation is stated in the text of the memorandum with the EU on macro-financial assistance", - the expert reminds.

According to Marunich, nothing at all had been done until the fall of this year. "And only before the President’s participation in the Eastern Partnership Summit, the bill was introduced in the Parliament in a hurry and passed in the first reading. This is despite the fact that the subject committee led by its former head Serhii Rybalka developed a similar bill together with experts back in 2016. Yet, the document was never put to use", - he notes.

"This example clearly illustrates that the government does not need the reforms, it only needs their imitation so that it may obtain loans", - he adds.

Another reform that the West has been expecting Ukraine to implement is the bill on protection of the rights of the lenders. "It is widely known that in Ukraine, it is very complicated to collect even legitimate debts from the borrowers. Two-thirds of the loans are never paid back. The non-performing loans are the deposits of pensioners and other citizens that the banks become unable to pay back. Do we need a legislation that would allow the banks to get those debts collected? Of course! The Parliament has failed to pass this bill twice", - the expert reminded. 

According to him, Serhii Rybalka, the head of the finance committee at the parliament tried to persuade the deputies to vote. "National Bank of Ukraine did not even bother to talk to the heads of factions. Even though the passing of this bill is one of our obligations under the memorandum with IMF", - the expert added.

We are facing a similar situation with the state-owned banks. "The Ministry of Finance is now managing more than a half of the banking system. Among those in power, has anyone got a plan for what to do with PrivatBank, Oschadbank in one, two, five years? Has anyone seen a strategy on the development of the state-owned banks? The Ministry of Finance has not had the time to create one. And the documents aiming to restore and strengthen the financial system elaborated by the committee have not even been considered by the parliament", - he notes.

In his opinion, when the corresponding bills were elaborated and the head of the financial and banking committee tried to present them in the parliament, he was dismissed from his post under a clearly fabricated pretext, because of the issues he raised. 

"It is a matter of holding the bankers and National Bank’s management responsible for closing down tens of banks and siphoning billions of hryvnias out of them. It is no secret that some banks were closed very quickly for political or rent-seeking reasons, in order to redistribute their property. While others were kept in operation for months so that there was enough time to get the funds out. And then a debt of tens of billions was dumped onto the shoulders of the citizens. Deposits are now being paid back virtually at the expense of the citizens through the Deposit Guarantee Fund", - the expert summed up.

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