Sunday, February 28, 2016

Yatsenyuk promises strong banks, transparent privatization, reform in state sector

Ukrainian Prime Minister Arseniy Yatsenyuk says that the goals of the Cabinet's economic program in 2016 include the strengthening of the banking system, transparent privatization and the reform of management at state-owned enterprises.

"The implementation of the free trade agreement with the EU forms the basis of our program," Yatsenyuk said during the "10 Minutes with the Prime Minister" weekly program broadcast by major TV channels on Sunday evening.

In his words, the government's action plan consists of two main sections. "The first one is designed to ensure economic growth, including the creation of new jobs and poverty reduction; the other is to restore a social contract, or I would call it "to serve the Ukrainian people and restore trust in the government."


According to Yatsenyuk, the government has provided a few basic steps for economic growth – they include the strengthening of the banking system and the resumption of lending at affordable rates; efficient and transparent privatization by inviting a broad circle of investors; and the reform of state-owned enterprises.

The government's plan also includes a new industrial policy, the appointment of new effective managers at the 50 largest state-owned companies, the opening of new markets for Ukrainian exports, the signing of free trade area agreements with Canada, Turkey and Israel, Yatsenyuk said. He also said the government planned to open at least four trade missions to promote Ukrainian exporters onto new markets and expand the geography of business forums.

The government also proposes maximizing the efficiency of capital investment. "Seventy percent of it will be channeled into the renovation of roads, 30% will be spent on the completion of facilities that are in the final phase of construction," he added.

Yatsenyuk is sure that effective fiscal, monetary and economic policy can stop price hikes.
"To do this, Ukraine must continue reforms as part of cooperation with the International Monetary Fund and other international financial institutions. We need to ensure an effective fiscal policy, switch to e-procurement by all government agencies and pay targeted social benefits, make use a twofold decrease in the payroll tax, which was introduced by the government, and bring wages out of the shadows, reform the State Fiscal Service, fight corruption at customs by engaging Western advisers to the customs service," he said.

He also pointed to the need to complete the reform in the energy sector. "We have lived through the winter without buying a single cubic meter of gas from Russia. We must ensure the profitability and independence of NJSC Naftogaz of Ukraine, boost production of own energy resources and achieve the country's absolute energy independence in the coming decade. And it's doable. Replacement of boilers, insulation of houses, extension of subsidy programs and payment only for high-quality housing and utilities are the main part of the country's energy reform, " he said.

"As for the fight against corruption, we need to appoint a new, independent Prosecutor General of Ukraine, strengthen credibility and ensure effective work of the National Agency for Recovery and Management of Assets, the National Bureau of Investigation and the National Agency for Prevention of Corruption," he said.

The premier also insisted that $1.5 billion, which had been stolen by former high-ranking officials, should be seized and returned to the state after the government's successful attempt to freeze the funds at the Ukrainian state-owned banks.

"These funds will be spent on the country's defense sector, on an improvement in the welfare of Ukrainian citizens," he added.

"This is my program. This program should become our common program. These actions require the support of the president, his faction and other real forces in the Ukrainian parliament," Yatsenyuk said.







No comments:

Post a Comment