Reformist head of Ukraine's central bank resigns

Her departure will deprive Ukraine of a tough reformer capable of taking on vested interests at a time when the country is recovering from a deep recession.

"Yes, it's true, she has submitted [her resignation]", the official said, confirming a report by Interfax.

The successor to head the central bank has not yet been named with both the president and Ukraine's parliament required to approve the resignation.

Gontareva was lauded by economists and the West for cleaning up Ukraine's murky financial sector in which many banks functioned as little more than the private purses of a select group of powerful billionaires.

The resulting devaluation from 12 hryvnias to the dollar from the day of her appointment in June 2014 to 27 on Monday slashed the value of people's savings and fed inflation that reached nearly 50% that year.

Ukraine's central bank earlier this month cut its 2017 growth forecast by almost a full percentage point as a result of the current trade blockade with the east, saying it could depress metal exports from the eastern regions and expand the current accounts deficit by more than 25 percent to $4.3 billion.

She also said that continued cooperation with the International Monetary Fund would ensure Ukraine can continue to pay off its state debt for the next three years without affecting the currency market or financial stability.

"Gontareva has come in for a huge amount of criticism, being ravaged in the largely oligarchic controlled Ukrainian media", he wrote.

Other reformers who quit or were pushed out include former Ukrainian minister of economy and trade Aivaras Abromavicius, who resigned and accused a close Poroshenko ally of corruption.

In addition, she said in a statement: "the National Bank (of Ukraine, the central bank) has been completely transformed, all the processes have been reset and today our central bank is a strong modern organization".

  • Zachary Reyes