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Where there is no law, but every man does what is right in his own eyes, there is the least of real liberty
Henry M. Robert

UKRAINE WILL GET WORLD BANK “SYMBOLIC LOANS” If it starts reforming

13 November, 2012 - 00:00

The World Bank has followed the IMF in promising Ukraine financial aid.

World Bank Director for Ukraine and Belarus Paul Siegelbaum declared that the amount of financial aid depends fully on Ukraine, and in case of a quick launching of economic reforms could reach $800 million to $1 billion per year. However, for the sake of fairness (the West knows what our quick reforms are really worth and how fast we can eat up loans), he noted, that “neither the IMF nor World Bank can grant aid in the volume Ukraine needs.” Thus the promised aid, tied incidentally to World Bank projects (reviving meat production around the capital, reforming agriculture, the coal industry, developing small and medium enterprises, etc.), was honestly described by Siegelbaum as “symbolic loans,” aimed at renewing foreign investors’ trust in government programs.

Stock exchange operators laughed when they learned about the intention to renew foreign investors’ trust in the government. They themselves do not put much trust in it, and, just like World Bank, they think Ukraine does not need money under the promise of launching reforms, but actual reforms which promise change of the situation and capital inflow. The dealers are tired of repeating that the IMF loan will not save Ukraine. Still they hope the government will finally use the last chance given by this loan, by supporting the hryvnia and preventing the crisis from developing according to the Russian scenario. Wood & Company research department head Ivan Kompan told Interfax-Ukraine that “all companies are facing bad times. The market was based on non-residents, and now that they are gone there is virtually no market.”

 

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