Ukraine has no other option but to fulfill all the requirements for receiving funding from the International Monetary Fund (IMF). Among them is the development of a procedure and the appointment of the managing director of the Deposit Guarantee Fund in an open competition. This opinion was expressed by economist Oleg Hetman in an exclusive commentary to UNN.
Context
In September, an IMF mission will start working in Ukraine in preparation for the fifth review of the Extended Fund Facility program. The expert discussions will focus on Ukraine's compliance with the terms of the Memorandum of Economic and Financial Policies. It is planned that as a result of a successful review of the program, Ukraine will receive the next tranche of the IMF in the amount of about $1.1 billion. Experts point out that among the main requirements of the international lender are open and transparent selections for senior positions in government agencies, including the Deposit Guarantee Fund. The IMF also requires that competition commissions include international observers. In particular, Ukraine and the IMF stipulated in the Memorandum of Cooperation that a procedure will be developed and an open competition for the position of the DGF Managing Director will be held in the spring of 2025.
"Yes, of course... Now half of Ukraine's budget is external financing, and most of it is from the IMF. Therefore, the state is forced to do all these important things, all the anti-corruption things, the rules that minimize black schemes, what has not been done for decades is now being done quite quickly. So we think that everything will be done. And we will receive the tranche - we have no other options," Hetman said, answering the question whether Ukraine will have time to fulfill all the IMF's requirements, including the development of a competitive selection procedure for the position of the DGF Managing Director.
He added that there are all the prerequisites for timely fulfillment of the international lender's requirements, including the already developed legal acts, so the only thing needed is the will of the parliament to vote for everything envisaged by the memorandum.
Hetman noted that Ukraine should also reform the State Customs Service in October at the request of the IMF.
Recall
Earlier it became known that the Administrative Board of the Deposit Guarantee Fund dismissed Svitlana Rekrut from the position of Managing Director of the DGF due to the expiration of her 5-year contract. Currently, Olga Bilay, Rekrut's deputy, is acting as managing director. According to media reports, the Fund's administrative board plans to appoint a new manager in a closed session . Among the candidates are Bilay and Pavlo Polarush, head of the National Bank's Department for Work with Troubled Assets.
It is possible that Bilyi may remain acting managing director of the DGF until an open competition for this position is held, as it makes no sense to appoint the head of the Fund for several months.
Add
According to media reports, Polarush has repeatedly traveled abroad since the beginning of Russia's large-scale invasion of Ukraine. In particular, journalists reported that in November 2022, he received permission to leave the country from the odious former Deputy Minister of Defense, who is currently a suspect in corruption crimes. The permit was allegedly issued to Polarush to travel abroad in an elite Lexus car to receive humanitarian aid. However, it is not yet known on what grounds Polarush traveled abroad from February to November 2022.
Member of the Verkhovna Rada Committee on Transport and Infrastructure Mykola Velychkovych believes that law enforcement officers should investigate Polarush's travels abroad. And a member of the Verkhovna Rada Committee on National Security and Defense, Hennadiy Kasai , does not rule out that Polarush may have problems during the special vetting process as a candidate for the position of managing director of the Deposit Guarantee Fund.