Page 112 - Azerbaijan State University of Economics

CONTRIBUTION OF BANKING SYSTEM INTO FINANCIAL STABILITY OF UKRAINE

political parties, the absence of representative mandate or engagement as

head of the authority, as well as the reasons for their appointment and
termination of their powers;

- the membership of the Board of the National Bank of Ukraine was

settled, as well as the qualification requirements for members of the Board,
similar to those identified for the members of the Council of the National

Bank of Ukraine;
- the suspense veto of the Council of the National Bank of Ukraine on

the decision of Board of the National Bank of Ukraine to clarify the
jurisdiction and procedure of interaction between the Council and the Board

was revoked.

Also the principle of non-interference of public authorities and other
public bodies or their officials and officers, and other legal entities and

individuals in the functions and powers of the National Bank of Ukraine, the

Council and the Board of the National Bank of Ukraine or employees of the
National Bank of Ukraine is clearly stated in banking law.

Additional operational capacity of monetary policy of the central
bank was reinforced by established norm to prevent the practice of granting

loans in national and foreign currencies, both directly and indirectly through
a government agency, other entity whose property is owned by the state, to

finance expenditures of the State Budget of Ukraine. Moreover central bank

is prohibited to buy in the primary market securities issued by the Cabinet of
Ministers of Ukraine, government agencies, other legal entity, whose

property is owned by the state.
Along with this the half of net profits for distribution is transferred by

the National Bank of Ukraine to the State Budget of Ukraine. Such a transfer
of funds is basically a money issue by the central bank to cover the budget

expenditures with all the negative consequences for the economy.

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