The head of the Central Bank of Ukraine Andriy Pyshny said that the issuance of the hryvnia to cover the budget deficit poses great risks to the macro-financial stability in the country. Pyshny said this in an interview with the newspaper. Finance Times.
According to him, Ukraine will no longer resort to “dangerous” monetary financing.
“It’s a quick remedy, but very dangerous,” he said.
On the eve of the International Monetary Fund (IMF) agreed with Kiev on a loan program of $ 15.6 billion for four years. The funding council, which plans to voice its position in the coming weeks, will need to approve the decision.
The Financial Times points out that ending issuance financing, using local bond markets, as well as introducing measures to increase tax revenues are the terms of the agreement.
Previously, the Central Bank of Ukraine reported that the net profit of Ukrainian banks in January-February augmented increased by 2.2 times compared to the same period last year and reached UAH 21.5 billion or approximately $582 million.