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Ukrainian President’s Secretariat Suspects National Bank of Corruption

Business Materials 30 October 2008 17:55 (UTC +04:00)

Ukraine, Kiev, 30 October / corr Trend Z.Novosvitskiy / Ukrainian President's secretariat suspects the National Bank of Ukraine (NBU) of corruption while realizing currency interventions.

"The regulator spent almost $5bln out of the country's gold and exchange currency reserves over three weeks, but the market did not feel the positive influence of this huge intervention. The rate of hryvnia continued to fall, the President's press service announcing quoting Alexander Shlapak, first deputy head of president's secretariat.

In accordance with given information, NBU sold currency only to the separate banks at the rate which was dramatically lower than market one. At the same time, the majority of currency requests remained unfulfilled, making the systematic devaluation of hryvnia impossible. Thus, separate subjects of market won, while other banks bear greater losses literally at every minute. General situation at the Ukrainian currency market continued to worsen swiftly.

Obviously, the National Bank applied is not an optimal formula to address these funds. Moreover, the criteria of division of these enormous resources are obscure not only public, but also subjects of the market. It causes just suspicions of corruption in the NBU's actions," Shlapak said.

"NBU should report for the volumes of currency sold out state reserves and also to promulgate the names of those financial institutions which purchased these funds. It will enable analyzing of an useful effect from such interventions by the regulator," secretariat consider

The correspondent can be contacted at [email protected]

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