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27.8 28.05
31.35 31.9
Politics 2018-10-15T04:34:23+03:00
Ukrainian news
We need a more united effort to push for reforms – Serhii Rybalka at the general meeting of the Independent As

We need a more united effort to push for reforms – Serhii Rybalka at the general meeting of the Independent Association of Ukrainian Banks

Unless we change the policy dramatically and accelerate reforms, Ukraine has little chance to avoid future crises and defaults in the coming 20 years. This means another shock for the banking system every time. Serhii Rybalka, MP, former chairman of the Verkhovna Rada financial committee said this during the general meeting of the Independent Association of Ukrainian Banks (IAUB).

“We all need reforms. IAUB is a potent organization that works on these issues daily. And I am tremendously grateful for that to all of you. But we need a more active, united effort” Serhii Rybalka said.

According to him, the government borrowed $3 billion in the international markets and now “believes that it may forget about the elections and reforms”.

“This government, just as the ones before it, is busy solving its own political problems through inflation. But now we have got the largest debt in our history. We give away more than 4% of our GDP only in the interest payments. This is twice as much as we spend on defense. Meaning, we could have been investing in growth all this money that we give away to the external lenders. The debt is becoming catastrophically large. Our obligations under interest payments render Ukraine’s future growth impossible” Serhii Rybalka said.

He also mentioned that the tax burden and the level of redistribution through the budget is growing again, and we can see this in the upcoming year’s budget. “Yet, we still have not worked out a clear strategy for stimulation of growth” MP said.

According to Rybalka, only systemic structural reforms can save Ukraine, such as the anti-corruption, judicial, tax, budget, industrial and financial reforms. He believes that the government must work to strengthen the financial sector daily and help the banks reduce the share of the non-performing loans. “A strategy for the state-owned banks’ development is necessary. We have to undertake an array of measures in order to strengthen the system and reduce the risks. This implies protecting the rights of the borrowers and the consumers of the financial services, creating the credit registry, reforming all regulators and Deposit Guarantee Fund. Finally, the new head of National Bank must be appointed. And every segment of the financial sector should be developed” MP Rybalka from the Radical Party said.


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