NBU Council dismisses NBU board member

31 July 2020

The Council of the National Bank of Ukraine (NBU) satisfied on July 31 a request of Serhiy Kholod to dismiss him from the position of NBU deputy governor, the Council’s head Bohdan Danylyshyn announced on his blog the same day. The council did not appoint Kholod’s replacement, member Vitaliy Shapran clarified in his own remarks. Recall, earlier this week, Shapran announced a possible NBU Council meeting on July 29 to consider personnel changes. Earlier, the Ukrainian News agency reported that the newly appointed NBU Governor Kyrylo Shevchenko is going to dismiss one of the NBU’s deputy heads this week, stating it will mostly likely be Roman Borysenko.

 

Kholod was appointed to his seven-year term as NBU deputy head in July 2018, being responsible for payment systems and money circulation.

 

Alexander Paraschiy: With the dismissal of Kholod, we expect Shevchenko will replace him with a loyal person, thereby securing a majority (three of six members and the tie-breaking vote) on the NBU’s executive board, which determines the central bank’s regulations. Recall, Shevchenko already secured the appointment of Yuriy Geletiy as NBU deputy head last week.

 

Most likely, Kholod’s dismissal won’t have a negative reaction from IFIs, but they are likely to be concerned with the mere fact that the new NBU head has so quickly gained control over the decision-making process in the central bank. At minimum, this increases the risk of the NBU’s eventual dependence on the current elites.

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