Poroshenko takes first step to form Central Bank Council

Ukrainian President Petro Poroshenko appointed two more members to the relaunched Council of National Bank of Ukraine (NBU) on Oct. 24, according to his website. The Council should consist of nine members, including four appointees of parliament (all appointed in June), the NBU head, and four appointees of the president (two of which are still vacant). Nonetheless, the presence of seven NBU Council members allow it to convene a meeting (with a quorum of six). The first meeting of the new council is scheduled for Oct. 25. The latest NBU Council lost its power in September 2015.

Alexander Paraschiy: The most critical decision in the exclusive authority of the NBU Council is the distribution of the NBU’s dividends. NBU Head Valeria Gontareva has said the central bank is ready to pay the state budget UAH 38.2 bln in profit this year. This is equal to 5.3% of the consolidated state budget’s collection plan for 2016. Such a distribution will significantly ease risks for the state budget, which traditionally faces increased payment burdens in the fall. A new, signficant burden this year is utility subsidies for households.