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Posted On

09
November
2021

Laws on NBU and NABU from memorandum with IMF published

KYIV. Nov 9 (Interfax-Ukraine) – The law on strengthening the independence of the National Bank of Ukraine (NBU), as well as laws on the procurement of legal services for the NBU, provision of information and the law on bringing the status of the National Anti-Corruption Bureau of Ukraine (NABU) to the requirements of the Constitution were published in the Holos Ukrainy parliamentary newspaper on Tuesday

All of them were adopted by the Verkhovna Rada on October 19, 2021 and are Ukraine’s obligations to the International Monetary Fund (IMF) to receive the second tranche under the Stand-By Arrangement.

The laws on strengthening the independence of the NBU and on the status of NABU come into force the next day after publication.

"The implementation of these changes will have a positive impact on the activities and the level of corporate governance of the NBU. The interaction between the council and the NBU board will improve, the requirements for members of both of these collegial bodies of the central bank will become tougher," Governor of the NBU Kyrylo Shevchenko said.

In addition, the document settled the issue of the regulator conducting inspections of banks on issues of cash circulation, in particular in connection with the recent change in approaches to bank inspections – taking into account the SREP methodology. The NBU is granted the right to conduct inspections in the areas of organization of cash work, collection of funds and transportation of currency values, organization of the protection of premises and ensuring the safety of valuables.

Amendments to the law on public procurement will allow the NBU to procure legal services to represent its interests in the international arena, in particular to protect rights and interests during the settlement of disputes, consideration of cases in foreign jurisdictional bodies.

The amendments to Article 33 of the Budget Code of Ukraine relieved the National Bank of the need to submit the forecast hryvnia exchange rate for drawing up the Budget Declaration. Now, the NBU will provide the Cabinet of Ministers, the President and the Parliament only with information on an approximate forecast of the part of the profit transferred to the state budget before March 1.

The law on the status of NABU turns the bureau into a central executive body with a special status (earlier NABU was a state law enforcement agency). The document provides that the change in the status of NABU does not require any additional measures related to the liquidation or reorganization of the body.