[Ohio UZO News] Ukraine: FT; NYT

[Deychak, Orest]

The Financial Times

Ukraine will not be weak link in global economy

Published: November 17 2008 

>From Mr Victor Yushchenko.

Sir, Like the rest of the world, Ukraine is being influenced by the
global financial crisis. The strategic sectors of the national economy -
banking, metallurgy, and construction - were most struck by the crisis.
However, the situation is under control.

At my initiative, the Ukrainian parliament passed anti-crisis laws, that
are expected to stabilise the economic situation in the country. We are
now taking important steps in this direction: creating a stabilisation
fund, providing support for infrastructure and investment projects,
decreasing interest rates for small and medium-size business,
safeguarding the stability of the banking system. Special attention was
paid to the creation of a deposit insurance fund.

Ukraine has sufficient gold reserves. An IMF loan for Ukraine will work
as an additional stabilising factor for the economy as well. This credit
has an economic and psychological effect giving us a chance to stabilise
our national currency, the hryvnia, and to secure the long-term growth
of the economy. Investors now can reassess their financial risks. As a
result of such a reassessment we expect a new inflow of funds from
abroad.

As a banker and economist I am certain that Ukraine defused these
threats in a timely fashion. As the president, I took direct personal
control of the situation. One of the main principles was to force the
government and political elites to abandon economically unsound and
politically populist social subsidies. The government made some mistakes
that need to be corrected. Thus, disbursement of money triggered
inflation, especially since this summer.

Surely, the crisis poses threats to the economics of the country, but it
is also a great possibility for economic reforms and a new chance for
strong economic development. Efficient steps taken to mitigate the
effects of the crisis can actually become new stimuli for small and
medium business. The adopted anti-crisis programme will stimulate
profound economic and administrative change in Ukraine. Ukraine has to
emerge from the crisis with an entirely new system of government
management. Our conclusion - we need further integration and greater
private entrepreneurship.

The crisis has changed our country's political priorities. Economic
leadership, unity, and professionalism became paramount. Ukraine needs
to resolve a host of political issues including the viability of our
parliament. In this regard there are two possibilities: either a new
coalition is formed or we proceed with the new elections. The answers to
these questions are found in the constitution and I will strictly adhere
to its every letter. There is no reason for pessimism about the
situation in Ukraine. We managed to react quickly to the crisis.
Moreover, we actually got a chance to undergo an economic transformation
and to implement structural reforms. As president I can assure you that
Ukraine will not become a weak link in the global financial and economic
system.

Victor Yushchenko,
President of Ukraine

The New York Times

LETTER

Democracy and Ukraine 

15 November 2008

To the Editor:

Re ''As Ukraine Staggers, Its Leaders Quarrel'' (news article, Nov. 4):

Part of the recent criticism aimed at Ukraine stands in sharp contrast
with very real achievements in many areas that define Ukraine as a
modern and dynamic country.

I would not deny that some critical remarks aimed at Ukrainian
authorities are to the point. Yet we are committed to democratic
procedures.

The decision on early parliamentary elections announced by the decree of
the president has clearly demonstrated his adherence to democratic
values. His position might not be shared by various political forces,
but this was his response to their inability to create an effective
coalition according to the provisions of the Ukrainian Constitution.

By requesting explicit compliance with the constitutional principles and
resolutely advocating the national interests, the president of Ukraine
has shown again that he is the undisputed focal point of the nation's
consolidation, the leader capable of protecting it from economic or
political crisis.

Having faced the aggravation of the situation in the financial sector,
he suspended his decision on elections, so that Parliament could approve
the stabilization package and adopt other urgent socioeconomic measures.

I am positive that we shall overcome all the difficulties no matter how
complicated the process of our development may look from the outside.

Centuries of struggle for independence and freedom have taught us to
uphold them.

Oleh Shamshur

Ambassador of Ukraine

Washington, Nov. 11, 2008

 

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