Zelensky's office discussed resignation of NBU Governor Pyshnyi, accusing him of closeness to IMF - sources

The President's Office discussed the possible resignation of the Governor of the National Bank of Ukraine, Andriy Pyshnyi, but after his visit to Bankova in early August, this personnel decision was reportedly abandoned. This was reported by 'Ekonomichna Pravda' on August 13, citing insiders in government.

Initially, sources from the publication assumed that the Verkhovna Rada could consider the NBU's leadership issue after the end of the parliamentary recess - on August 18 or 19. Later, interlocutors clarified that after Pyshnyi's meeting at the President's Office, the idea of his dismissal was allegedly shelved.

Bloomberg separately reported that President Volodymyr Zelensky is increasingly dissatisfied with the work of the National Bank governor. At the same time, according to the agency, the president currently does not plan to dismiss Pyshnyi and does not see a sufficiently strong candidate to replace him.

According to unnamed Bloomberg interlocutors, one of the reasons for the tension was the perception of Pyshnyi as an official too close to the International Monetary Fund. The president is allegedly annoyed by the unpopular conditions that the IMF requires Ukraine to fulfill as part of the $8.1 billion loan program. Among them is a tax increase that has drawn criticism from some lawmakers and citizens.

Complaints also allegedly concern the monetary policy of the National Bank. Some senior officials believe that the regulator maintains overly tight conditions and does not do enough for the economy weakened by war. At the end of July, the NBU unexpectedly raised the key policy rate from 15% to 15.5%, explaining the decision by increased inflationary pressure.

The National Bank told Bloomberg that the issues raised by the agency were not discussed either directly or in terms of possible consequences. The regulator emphasized that it ensures price and financial stability, supports the foreign exchange market, and the smooth functioning of the banking system. The NBU also noted that the current lending growth is the longest and most dynamic in 17 years.

Presidential spokesman Serhiy Nykyforov and an IMF representative declined to comment. There are no official statements about an intention to replace the head of the National Bank.

Bloomberg names the head of the parliamentary finance committee, Danylo Hetmantsev, as one of the possible contenders, whose candidacy is allegedly supported by the leader of the 'Servant of the People' faction, Davyd Arakhamia. Sources also consider the first deputy governor of the NBU, Serhiy Nikolaichuk, as another potential candidate.

Pyshnyi has headed the National Bank since October 2022, and his term expires in 2029. The Governor of the NBU can be dismissed by the Verkhovna Rada upon the president's submission, while legislation provides safeguards to protect central bank independence.

Sources: Bloomberg, Ekonomichna Pravda