The International Monetary Fund Mission recently completed the fifth review of the Extended Fund Facility (EFF) program. According to some participants, the negotiations were difficult, as international partners set a number of tough conditions for Ukraine, including budget revenues. However, the business reputation of the heads of key state institutions, such as the National Bank of Ukraine, has always been of great importance to international partners. Experts note that the chief lawyer of the National Bank, Oleksandr Zyma, is a figure whose reputation raises questions among Ukraine's partners, as he is the one who approves the regulator's decisions from a legal point of view, UNN writes.
Earlier, the SBI confirmed that it is investigating a criminal proceeding for alleged abuse of office by NBU Chief Lawyer Zyma. The case concerns a letter from the National Bank to the Deposit Guarantee Fund signed by Zyma, in which he recommended that the Fund withdraw the lawsuits filed by Concord Bank against the NBU. The document referred to four lawsuits filed by the bank against the NBU, in which Concorde demanded the cancellation of fines totaling almost UAH 63.5 million. They were filed even before the National Bank decided to liquidate Concorde and put it under temporary administration.
On April 22, the Shevchenkivskyi District Court of Kyiv recognized Yulia Sosedka, co-founder of Concord Bank, as a victim in this criminal proceeding. According to the co-owner of Concorde, Yelena Sosedka, Zyma deprived the bank's shareholders of their constitutional right to a fair trialby his instructions.
However, SBI investigators ignored this court decision for more than 4 months and did not hand Yulia Sosedka a memo on the rights of the victim. Instead, the Kyiv City Prosecutor's Office transferred Zyma's case to the Pechersk District Police Department for investigation. Yulia Sosiedka does not rule out that this is an attempt to delay the investigation.
Such reputational risks have a negative impact on the perception of the NBU's management, as international partners pay great attention not only to economic performance but also to compliance with integrity and ethics standards. After all, partners such as the IMF expect Ukraine to fully comply with international standards, especially in the context of ongoing reforms and the need to continue financial support.
It is possible that the negative reputation of the NBU's chief lawyer creates additional barriers in the Ukrainian regulator's negotiations with international lenders and partners. As you know, integrity is a key factor for institutions such as the IMF and the World Bank. They not only evaluate economic performance but also take into account the transparency and legitimacy of the organization's management.
Moreover, in addition to the NBU's legal department, Zyma also chairs the administrative board of the Deposit Guarantee Fund, which dismisses and appoints the Fund's management. The transparent operation of this body has always been of particular interest to Ukraine's foreign partners, as it plays an important role in the functioning of the banking sector. And the presence of a scandal involving possible abuse of power by an official may raise concerns about the stability and reliability of Ukraine's banking system. This could lead to delays in the provision of financial assistance or the imposition of additional conditions during negotiations, among other things.
Experts point out that in order to improve the NBU's image in the international arena, it is necessary to resolve the issue of personnel appointments. In the case of Oleksandr Zyma, the situation could be resolved by his dismissal or replacement with a figure with a more positive reputation, which would restore the trust of international partners. After all, his personal business reputation in this case negatively affects the image of the entire National Bank.
The NBU and the Government of Ukraine should pay particular attention to ensuring that officials meet the highest standards of professional ethics and transparency. Failure to do so could have a negative impact not only on the negotiations, but also on the overall support for the reforms needed to stabilize Ukraine's economy. Timely responses and personnel changes can help restore the trust of partners and contribute to the successful implementation of reforms that are currently critical for Ukraine.