You're reading: Poroshenko says refinancing rate could be cut after IMF agreement

The situation in the economy and financial system will raise the issue of cutting the refinancing rate of the National Bank of Ukraine (NBU) to relax the access of companies to credit resources, Ukrainian President Petro Poroshenko has said.

“I think that it’s time when the rate could be cut,” he said at a meeting with the European Business Association (EBA) and the American Chamber of Commerce in Ukraine in Kyiv on May 27.

He said that some currency restrictions could be also lifted, while the balance between the exchange rate stability and currency restrictions is retained.

Poroshenko said that it is important to find good arguments for this step for the International Monetary Fund (IMF) to maintain cooperation under the Extended Fund Facility (EFF).

Poroshenko pointed out the important role NBU Governor Valeriya Gontareva had played in stabilizing the banking system where 49 dummy banks operated.

“No one had [the] will to make decisions that were extremely important for recovery of the banking system. Everyone was afraid of responsibility… We retained the banking system,” he said.

Commenting on the adoption of a bill on the conversion of currency-pegged credits at the exchange rate that was in effect at the moment of their issue at second reading, Poroshenko criticized the decision of the lawmakers, advising them to covert the currency-pegged deposits at the same exchange rate.