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Translated by Ollie Richardson

The mission of the International Monetary Fund (IMF) in Ukraine found substantial gaps in the regulatory framework of the National Commission on Securities and the Stock Market (NKTSBFR), which led to the violation of law, including on issuing fictitious securities.

“The NKTSBFR of Ukraine has significant gaps (in the regulations), the impact of which is exacerbated by the lack of sufficient supervising, investigative, and enforcement powers,” stated the documents of the Fund. “This promoted a lack of transparency and a wide circulation of illegal actions in the market, including the release and sale of “fictitious” securities,” added the Fund’s staff.

In this regard, the IMF proposed to amend Ukrainian legislation to bring it in line with international standards and to provide the NKTSBFR with adequate funds, which requires disclosure and more detailed information about abuses in the market”.

At the moment the authorities of Ukraine and the IMF are conducting negotiations on the allocation to Ukraine of the next tranche for $1 billion within the program of financial aid. It was expected that the money will be allocated in July, however, according to the schedule of the IMF board of directors, the question of Ukraine won’t be considered until July 27th. Also the review of the national economy that has to be considered by the council still hasn’t been approved. The head of Fund Christine Lagarde declared that a number of technical details are preventing the coordination of the review.

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