Ukraine central bank governor submits resignation, citing political pressure

Ukraine's Central Bank Governor Yakiv Smoliy unexpectedly submitted his resignation on Wednesday, citing "systematic political pressure" on the bank's activities and attempts to curb its independence.

Ukraine's Central Bank Governor Yakiv Smoliy unexpectedly submitted his resignation on Wednesday, citing "systematic political pressure" on the bank's activities and attempts to curb its independence. The decision could derail a $5 billion loan program that Ukraine agreed last month with the International Monetary Fund to fight a sharp economic slump, which is conditional on the central bank staying free of political meddling.

The central bank has previously complained of being subjected to pressure, including over its decision in 2016 to nationalize Ukraine's largest lender, PrivatBank, which was formerly co-owned by a backer of President Volodymyr Zelenskiy. "I've submitted my resignation appeal to the President. This decision has been taken as an answer to systematic political pressure that denied fulfillment of my duties as the Governor," Smoliy wrote on Twitter.

"Let it be a warning for attempts to undermine institutional independence of the central bank." The IMF and Zelenskiy's office did not immediately respond to a request for comment.

Smoliy submitting his resignation came on the same day as Ukraine raised $1.75 billion in new Eurobond issuance, on the back of securing the IMF deal. It must first be accepted by Zelenskiy and then approved by parliament.