Audit checks of transactions of the National Bank of Ukraine on refinancing commercial banks in Q4, 2008 have not uncovered any cases of commercial financial institutions unfairly benefiting from decisions made by the central bank, according to a posting on the NBU's Web site.
“After analyzing the data… concerning the NBU and key banks that
received liquidity support and took part in the currency interventions
in Q4, 2008, there was no evidence that any official or informal
relations between NBU representatives and the banks that received
liquidity support or took part in currency interventions … [benefited
the banks unfairly],” reads the report, citing an extract from a report
of an audit company.
As reported, earlier the parliament and government accused the NBU
of non-transparent activities and abuse of law in refinancing
transactions conducted in late 2008.
The International Monetary Fund (IMF) demanded that checks of the
refinancing and currency interventions be conducted. Ernst & Young
Audit Services checked the central bank, after the company won a tender
among the four leading auditing companies.
The NBU said that resolutions regulating the activities of the NBU
in liquidity support (24 legal acts), on a procedure for making
decisions, operating processes and control procedures for the said
transactions were analyzed.
The report says that overnight, tender, stabilization, repo and swap
refinancing credits issued in Q4, 2008 worth UAH 105.4 billion were
checked: 745 transactions worth UAH 90.867 billion, or 86.2% of them,
were checked.
All of the 93 rejected applications and the reasons for their rejection were analyzed.
The NBU said that in Q4, 2008 2,297 currency sale transactions and
92 currency purchase transactions were made: foreign currency sales
represented 95.7% of all currency interventions in the hryvnia
equivalent.
The sampling of currency interventions checked by the auditors
included 2,213 transactions worth UAH 66.099 billion or 92.6% of the
total number and 95.5% of total value of transactions made in Q4, 2008.
The report also says that 26.8% or $2.831 billion currency
interventions made in Q4, 2008 were target interventions for the needs
of state companies.
“The results [of the checks] were submitted to the IMF, which
decided to go ahead with the further crediting of Ukraine [in H1,
2009],” reads the report.
