In the context of Ukraine's total dependence on external financing, it is dangerous to ignore the interests of the IMF recommendations - expert

Ukraine's economy is dependent on external financing, and it is therefore dangerous to ignore the recommendations of one of its main creditors, the International Monetary Fund. In particular, this refers to the development of a procedure and an open competition for the position of Managing Director of the Deposit Guarantee Fund. This opinion was expressed by Ruslan Bortnik, Director of the Ukrainian Institute for Policy Analysis and Management, in an exclusive commentary to UNN.

Context

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 applicants are Bilyi and Pavlo Polarush, head of the National Bank's Department for Work with Troubled Assets.

In an interview, Rekrut said that the IMF requires Ukraine to amend its legislation to hold an open competition for the position of the head of the DGF. Currently, there is no such procedure in the law. According to her, Kyiv has committed itself to developing and approving such a procedure in the spring of 2025. It is possible that Bilyi may remain acting managing director of the DGF until an open competition for this position is held, because what is the point of appointing a new manager for six months?

"Under the current conditions of total dependence on external financing, it is certainly dangerous to ignore the interests of the IMF, which may lead to the suspension of cooperation, may lead to certain financial and economic problems for the Ukrainian economy... So, given our financial dependence, we must take into account the IMF's requirements, given the financing that we cannot do without now," Bortnik said.

At the same time, he added that the Ukrainian government should always focus on national interests.

Bortnik emphasized that the Deposit Guarantee Fund plays a key role in building confidence in the banking system in Ukraine. "In any case, this institution is extremely important in the financial system. In fact, public confidence in the banking system depends entirely on the functioning of the DGF," he emphasized.

That is why, according to Bortnik, the position of the Fund's managing director is critically important, and it is necessary to find a balance, to take into account, of course, the interests of external loans and to leave an element of possibility for the government and the Presidential Office to manage the situation.

Add

Earlier, journalists found out that one of the candidates for the position of managing director of the DGF, Pavlo Polarush, has repeatedly traveled abroad since the start of the large-scale invasion. In particular, according to media reports, 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 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.