The federation urges to not destroy the funding scenario within the nation by high-profile searches and delays within the context of the refinancing of the VAB financial institution.
The Federation has acknowledged that authorized procedures in refinancing of the VAB Financial institution and different instances are going down in a approach that adversely impacts the funding scenario within the nation.
At this time the Federation of Employers of Ukraine made the open enchantment to the President and the Prime Minister public. On this assertion, the federation urges to not destroy the funding scenario within the nation by high-profile searches and delays within the context of the refinancing of the VAB financial institution and to contemplate the potential for restructuring Oleg Bakhmatyuk’s debt with a view to save 27,000 jobs and return the debt to the funds.
Open Letter of the Federation of Employers to the President and the Prime Minister
The Federation of Employers of Ukraine (FEU) has been constantly essential of the actions of the Nationwide Financial institution of Ukraine (NBU) run by Valeria Hontareva and the Particular person Deposit Insurance coverage Fund (IDIF) led by Kostiantyn Vorushylyn.
The criticism was provoked by the dearth of transparency in issues of refinancing of banks, appointment of interim directors, and liquidation of banks. Different factors of rivalry included a coverage that inspired banks to discontinue the financing of the actual sector of the financial system and as a substitute have interaction in speculative buying and selling within the overseas alternate and debt markets. In addition they instituted nontransparent mechanisms used to promote the belongings of banks up for liquidation. Briefly, their actions not solely drove banks to chapter but in addition triggered enterprise entities to incur substantial losses and dealt a detrimental blow to the Ukrainian financial system as an entire. On this context, employers assist makes an attempt by the regulation enforcement companies to analyze such actions of NBU and IDIF management.
In the meantime, the Federation of Employers of Ukraine is extraordinarily involved over latest occasions surrounding the actions of the unformed and regulation enforcement providers. In our opinion, they’re a publicity stunt for essentially the most half and have little in frequent with a very honest and unbiased pretrial investigation of alleged crimes within the area of economics and public finance. A working example is the search of the premises and arrest of Raiffeisen Financial institution Aval officers late on the evening of November 11, 2019 by operatives of the Nationwide Anti-Corruption Bureau of Ukraine. They’re now formally suspects.
In the meantime, the Felony Process Code of Ukraine states search have to be performed at a time when it will possibly trigger the least impairment to an individual’s bizarre actions. Such incidents have been just lately on the rise. They’re extraordinarily detrimental to the funding local weather in Ukraine and trigger mistrust within the rules of justice, equality, and safety of all residents proclaimed by the nation’s management. As for the accusations levied in opposition to VAB Financial institution executives and homeowners, the Federation wish to reiterate that over the course of latest years Oleh Bakhmatiuk, proprietor of the financial institution and the corporate Ukrlandfarming, repeatedly provided to rearrange fee of UAH eight billion to the nation’s funds below the restructuring mechanism and put ahead such proposals to NBU administration.
The Federation of Employers of Ukraine additionally repeatedly got here ahead with initiatives to resolve the scenario surrounding Ukrlandfarming primarily based on the constructive proposal of VAB Financial institution proprietor Oleh Bakhmatiuk. Regrettably, they fell on deaf ears over on the NBU. Keep in mind that Ukrlandfarming is among the largest employers within the agricultural sector, using near 27,000 Ukrainians and conserving them from labor migration overseas by providing first rate wages within the countryside. If the federal government brushes off a constructive dialog with the proprietor of VAB Financial institution and Ukrlandfarming, this may increasingly hurt not solely the nationwide funds but in addition the funding local weather in Ukraine as an entire.
The corporate that has discovered itself a hostage of circumstance is a significant exporter and taxpayer and an important factor of Ukraine’s financial potential. This case might be channeled right into a constructive vein for the sake of job security, tax income, and a positive funding local weather in Ukraine, the extra in order that the proprietor of Ukrlandfarming presents to pay UAH eight billion to the nationwide funds by means of restructuring. Within the opinion of Ukrainian employers, this may be considered not solely as a goodwill gesture but in addition as an indication of accountability and a need to resolve the scenario constructively in the very best pursuits of each the corporate and the state.
We enchantment to you to take a statesmanlike place as a result of – relying on the best way you select to go – the decision of this example can have both extraordinarily adverse or very constructive penalties for nation’s financial system and society alike. A dialog between the federal government and the enterprise group in the very best pursuits of the nation is all the time a greater choice than “warfare”, since even after the struggle has been waged and losses suffered there all the time comes a time for negotiations.