Photo: Natalia Gubernatorova
Ukraine will refuse release to circulation of new printed hryvnia banknotes and non-cash money in order to maintain cooperation with the International Monetary Fund. This information appeared in a press release of the National Bank of Ukraine. It was issued after a meeting between the head of the NBU, Andriy Pyshny, and the American ambassador in Kyiv, Bridget Brink.
“The budget for 2023 does not include the financing of emissions. Today we are talking about a qualitative restart of the domestic debt market and the maximum use of its resources. This is after all, important for further effective cooperation with the IMF,” Pyshny explained to the American diplomat.
According to official data, since the beginning of the Russian NWO in Ukraine, the emission of hryvnias has exceeded 364 billion. The National Bank injected money into the country's economy by buying domestic government bonds from the Ministry of Finance. In peacetime, the regulator cannot use such tools. In addition, the issue is not approved by the IMF. As a result, the hryvnia exchange rate fell sharply – from 28.5 to 39 per dollar, and inflation reached 26.6% percent in October.
Now the National Bank of Ukraine is trying to shift part of the debt burden, pressure on public and private banks. They are tempted to buy war bonds issued by the Ukrainian government at unfavorable rates. The NBU has already begun to examine the bank y whether they meet the requirements for the quality of loan portfolios. In the absence of loyalty to the authorities, the license of financial institutions can be withdrawn.