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| - IMF chief Kristalina Georgieva warned Ukraine authorities on Tuesday about political pressure exerted on the country's central bank and signaled that the aid provided by the fund might be at risk. Georgieva said she had an "open discussion" with President Volodymyr Zelensky about "concerns about the pressures being put on the National Bank of Ukraine (NBU)," and reminded him that central bank independence is "requirement under the current IMF-supported program." The Washington-based crisis lender last month approved a $5 billion, 18-month loan package for Ukraine to deal with the economic hit from the coronavirus pandemic, and released an initial tranche of $2.1 billion. NBU chief Yakiv Smoliy resigned early this month, saying "systematic political pressure" made it "impossible" for him to fulfil his duties. The departure came after lawmakers, mainly from Zelensky's ruling party who are considered close to oligarch Igor Kolomoisky, attacked the bank's leadership. But Georgieva praised the institution for "the successful clean-up of the financial sector -- which was ravaged by fraud." "The reform of the NBU and its performance over the past five years is a clear success story for Ukraine," she said in a statement. "The credible policy actions of the NBU have been instrumental in stabilizing the economy." Business leaders expressed concern over the undermining of the central bank's autonomy, and said it would jeopardize confidence in the country's economic management. Zelensky tried to reassure the IMF chief, stressing that "continuing cooperation with the IMF in the framework of a new stand-by program is an important priority for Ukraine." "We appreciate the support of the IMF in this difficult period for our country," he said. He pledged to nominate an "independent technocrat" to lead the central bank by the end of the week who will be chosen based on "professionalism, integrity and impeccable reputation." hs/bgs
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