In October, it was safe to say that Ukraine had withstood the blow of the crisis.
After the first reading, the bill was sent for revision and was forgotten …
Not all of Yushchenko’s actions as chairman of the National Bank at this time can be considered infallible. For example, under pressure from the NBU chairman to service domestic loans, the hryvnia exchange rate was artificially strengthened throughout 1997, which had a painful effect on exports and led to an imbalance in trade flows in favor of imports. Yushchenko’s 17 percent reserve ratio not only failed to ensure the stability of the hryvnia exchange rate, but also significantly reduced the profitability of the banking business. But there were not so many such mistakes.
Low "error rate" contributed to the fact that for many Viktor Yushchenko has become a "infallible" economist. He taught the state not to print money in vain and stopped hyperinflation. He built a foreign exchange market that serves foreign trade.
With his blessing, several dozen promising banks appeared in the country. Thanks to his activities, Ukraine has not had a single banking crisis. Yegor Sobolev in "Mirror of the week" ironically notes:" It is possible that many people in the City of London will be shut up for Yushchenko’s belt in terms of banking professionalism, but for Kyiv, where there is not even a financial center, he is working off his money."…
In April 1998, a tragedy occurred: an unknown killer shot Vadim Hetman. The death of the Hetman caused many rumors and versions. However, it was clear that the Hetman and his team (which included Yushchenko) had created a powerful economic "clan" and to someone this "clan" disturbed. Hetman and Yushchenko gained control not only over Ukraine’s financial system, but also (to some extent) over transit financial flows.
They had in reserve the trust of the people and the positive image of the reformers. With such start-up capital, one could think of storming the highest peaks of power in Ukraine. Yushchenko is increasingly being talked about as the future president of Ukraine.
After the death of Vadim Hetman, Viktor Yushchenko found himself in some confusion. It was necessary to act alone, collect the wreckage of the team, prepare for attacks by enemies and rivals. One of the most dangerous blows could be a blow from the President’s entourage, because Leonid Kuchma is quite jealous of potential competitors.
The second shock moment for Viktor Yushchenko was the death in a car accident of the head of the Savings Bank of Ukraine Oleksandr Veselovsky, another member of the team created by the Hetman.
The third shock for the National Bank and Viktor Yushchenko was the crisis of the Ukrainian financial system in August-September 1998. At first, Yushchenko was confused. He began to act nervously, inconsistently, even hysterically, trying to first direct the hryvnia after the Russian ruble, and then stopped and acknowledged the erroneousness of such a decision.
The world has talked about the financial collapse in Ukraine. "Financial Times" in September 1998, they wrote about the threat of financial collapse that persisted in Ukraine. However, it was stressed that not only the government and the National Bank, but also the International Monetary Fund should be responsible for this collapse. The World Bank, through one of its leaders, P. Siegelbaum, stated that the crisis in Ukraine will drag on, because there is only one way out – reforms, and the Ukrainian government does not carry them out.
Victor Yushchenko spoke about the need for deep reform of the Ukrainian economy. But this is for the future. So far, the dollar has been driven into a narrow hryvnia corridor – albeit artificial, but still so necessary at the time. This emergency measure did not contribute to the popularity of the Ukrainian currency in the West, but had a wonderful psychological effect: against the background of the Russian crisis, the devaluation of the hryvnia in Ukraine looked like an innocent pastime of financiers.
In the days of the crisis, Yushchenko mobilized all the forces of the National Bank. It was practically switched to a non-standard working day. Almost all employees of the National Bank worked in an intensive mode, in conditions close to combat, until 2 o’clock at night. In October, it was safe to say that Ukraine had withstood the blow of the crisis. Let with losses, but endured.
When some economists around the president began to talk about the need for an issue that could address the issue of devalued arrears of salaries, pensions, scholarships and other social benefits, Yushchenko said:" No, I will not personally broadcast. Because this is a crime. This is a crime that entails a great sin, for which it will be a shame to be professionally responsible …
I am deeply convinced that today we do not have a political force that could take responsibility for the political decision on the issue. Tales that the issue under certain circumstances will bring a good gift in a point, targeted, controlled, limited, monthly or other way, I think neither business nor political circles will accept"… Yushchenko continued to be a staunch monetarist (with some global financiers gradually envying Yushchenko and calling him "Michel camdess’s favorite" knowing about the wonderful personal relations between Yushchenko and the head of the International Monetary Fund).
Summarizing the results of the crisis, the newspaper "Day" wrote:" The principles of monetarism followed by Viktor Yushchenko’s team of like-minded people in any other country would be seen as the only possible ideology for the central bank. In our conditions, when the executive and legislative branches cannot decide on the course of reforms, when the central bank and the real sector work in different "historical" modes, concept "strong money" is unnecessary to society. Is there a way out of the current situation? How long can you combine the incompatible – strong money and weak power?"
In this situation, Leonid Kuchma did not thank Viktor Yushchenko – on the contrary, he sharply criticized the policy of the National Bank. In an interview with the agency "Interfax" The president said that "some wanted to show that the Ukrainian hryvnia is more stable than the US dollar or the Japanese yen"… He called the short-sighted policy of the National Bank, which "supports the exchange rate only at the expense of foreign exchange reserves" when demand for the dollar far exceeds supply. Kuchma spoke about the currency corridor, denied the National Bank excessive independence and promised to subordinate it to the Cabinet of Ministers.
In addition, the relevant services were instructed to check in detail the information about the abuse of senior officials of the National Bank. In particular, information about the construction of a sports complex in Kyiv with a swimming pool, sauna, gym for the National Bank. Journalists were very surprised: aren’t similar services used by other civil servants? Then why is nothing mentioned about them?
In early 1999, the Chairman of the Verkhovna Rada Commission, Viktor Suslov, submitted to the Verkhovna Rada the documents that formed the basis of the accusations against Viktor Yushchenko. According to these documents, in the period from May 12, 1997 to January 28, 1998 the National Bank of Ukraine placed on deposits in the bank "Credit Suisse First Boston (Cyprus) Ltd." foreign exchange reserves of the NBU in the amount of 580 million dollars. Of these, $ 85 million was not returned.
Among the commission’s other allegations is the transfer of Ukraine’s foreign exchange reserves to Moscow’s "National Reserve Bank" inexpediency of taking into account as collateral government bonds ("gas stations") with repayment in 2002 – 2005, consent to early repayment of one of the deposits by domestic government bonds. Yushchenko was accused of making his brother Petro a shareholder "The first investment bank" (This fact was regarded as the beginning of the formation of a financial group in Ukraine headed by the chairman of the National Bank).
Viktor Yushchenko immediately went on the offensive. He said he would resign when there was at least one dishonest person on the bank’s board. "Let the members of the Verkhovna Rada commission themselves take leading positions in the NBU and act as they wish"… Viktor Suslov began to justify himself: they say there were violations, but Yushchenko’s signature is not on any document. Yushchenko attacked again:" Even if I did not sign the documents, I am responsible for the actions of my subordinates"… Since then, according to journalist Serhiy Shevchenko ("Capital news") there is a psychological shift in the deputy’s mind in favor of Yushchenko./ p>
Here is how he describes the parliamentary hearing on Yushchenko’s case:" At this moment, I understand that Viktor Andriyovych is an incorrigible idealist. Can you imagine, he showed the deputies slides with graphs and charts. One of my acquaintances, who was present at the meeting, shared his impressions:" Yushchenko’s subordinates showed slides, and people yawned and read newspapers. And only one person in each faction or deputy group closely watched what was happening, and then briskly gestured, showing how to vote.
The movers, obviously realizing that nothing depended on them, had fun shouting slogans"… But none of the draft resolutions submitted for discussion by deputies received a sufficient number of votes. Yushchenko assessed the events in the parliament as follows:" A serious conversation has taken place, but if we do not unite around stabilizing the foundations of the financial system, this conversation may not lead to anything."…
It also turned out that one statement by Yushchenko that he would not run for president in 1999 was not enough. He was still seen as the 2004 President. That is why the parliamentary hearings revealed the faces of the real customers of the farce. The Speaker of the Verkhovna Rada, Viktor Medvedchuk, decided to strike Yushchenko unexpectedly (but is it so unexpected?). "There are enough reasons to believe that the activities of the National Bank and, in particular, its leadership deserve the assessment not only of the deputy commission of inquiry, but also of law enforcement agencies." – Victor Vladimirovich declared. By the way, he was also named among the probable favorites of the buy compare and contrast essay now 2004 presidential campaign.
Viktor Yushchenko was forced to look for allies in the President’s entourage. Alexander Volkov extended a helping hand to him. But under certain conditions. Volkov’s conditions for Yushchenko, tired of the blows of fate, looked like conditions of bondage. In fact, the bank came under Volkov’s influence "Ukraine" – the brainchild of Yushchenko and the late Hetman.
Now the commercial structure became the owner of this bank "Ukrros" which was controlled by the People’s Deputy Volodymyr Satsyuk, a person close to Oleksandr Volkov.