Government is Looking for Money

With Premier Yanukovych on sick leave, First Vice Premier Mykola Azarov spoke January 15 on behalf of the government about all those reserves which could help put in order and fulfill the “unattractive” (as described by NBU Board Chairman Anatoly Halchynsky) Ukrainian budget for 2003.

To ensure payment of minimum wages, whose rate was set under the law passed following the adoption of the budget, the government has suggested that the rate not be raised, as planned, to UAH 237 as of July 1, 2003. At the same time, the government intends to considerably cut expenditures for some items, since, to quote Mr. Azarov, “the adopted budget is balanced and realistic.” “The government together with parliament will find a compromise solution which will make it possible to maintain financial stability in the country and considerably improve the social security of our citizens,” First Vice Premier cum Finance Minister Azarov believes. In his speech, he made reference to a meeting with chief managers of budget funds at which he was instructed to save 10% of the funds allocated to ministries and departments. “Understandably, each official would like to have a comfortable office staffed by qualified employees, but we need to live within our means and understand the situation in the economy,” said Mr. Azarov. Apart from that, the Ukrainian government is looking for investors ready to provide loans on optimal terms. However, as Mr. Azarov put it, Ukraine is not in a hurry to take loans. “We will take loans when the conditions are optimal. There is no emergency whatsoever,” he stressed, adding that the budget provides adequately for payments due on the state debt, including foreign debt. Simultaneously, Mr. Azarov confirmed government plans to refinance payments of the principal due on foreign debt in 2003.

The First Vice Premier also assured those present that the government action plan (without which he can hardly count on the understanding of international financial organizations and foreign investors — Auth.) will be ratified a week from now, at the latest. According to him, this document is currently being coordinated to tally with “a single ideology of the program.” This done, the Cabinet will submit it to parliament for consideration. Simultaneously, Azarov expressed confidence in Ukraine’s ability to amend its legislation (introduce amendments to the Criminal Code) and thus have FATF sanctions lifted at the organization’s upcoming session slated for February.