The federation urges to not destroy the funding state of affairs 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 happening in a approach that adversely impacts the funding state of affairs within the nation.
Immediately the Federation of Employers of Ukraine made the open attraction to the President and the Prime Minister public. On this assertion, the federation urges to not destroy the funding state of affairs within the nation by high-profile searches and delays within the context of the refinancing of the VAB financial institution and to think about the opportunity of restructuring Oleg Bakhmatyuk’s debt so as to save 27,000 jobs and return the debt to the price range.
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 an alternative interact in speculative buying and selling within the overseas trade and debt markets. Additionally they instituted nontransparent mechanisms used to promote the property of banks up for liquidation. In brief, their actions not solely drove banks to chapter but additionally triggered enterprise entities to incur substantial losses and dealt a detrimental blow to the Ukrainian financial system as a complete. On this context, employers help makes an attempt by the legislation enforcement businesses to analyze such actions of NBU and IDIF management.
In the meantime, the Federation of Employers of Ukraine is extraordinarily involved over current occasions surrounding the actions of the unformed and legislation enforcement companies. In our opinion, they’re a publicity stunt for essentially the most half and have little in widespread with a really honest and unbiased pretrial investigation of alleged crimes within the subject 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 Legal Process Code of Ukraine states that a search have to be performed at a time when it could actually trigger the least impairment to an individual’s atypical 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 ideas 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 want to reiterate that over the course of current years Oleh Bakhmatiuk, proprietor of the financial institution and the corporate Ukrlandfarming, repeatedly supplied to rearrange fee of UAH eight billion to the nation’s price range underneath 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 state of affairs 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 without doubt one of the largest employers within the agricultural sector, using near 27,000 Ukrainians and retaining 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 occasionally hurt not solely the nationwide price range but additionally the funding local weather in Ukraine as a complete.
The corporate that has discovered itself a hostage of circumstance is a significant exporter and taxpayer and an important ingredient of Ukraine’s financial potential. This example could be channeled right into a constructive vein for the sake of job security, tax income, and a good funding local weather in Ukraine, the extra in order that the proprietor of Ukrlandfarming affords to pay UAH eight billion to the nationwide price range by restructuring. Within the opinion of Ukrainian employers, this may be considered not solely as a goodwill gesture but additionally as an indication of accountability and a want to resolve the state of affairs constructively in the very best pursuits of each the corporate and the state.
We attraction to you to take a statesmanlike place as a result of – relying on the way in which you select to go – the decision of this case 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 neighborhood in the very best pursuits of the nation is at all times a greater possibility than “warfare”, since even after the struggle has been waged and losses suffered there at all times comes a time for negotiations.