The Prime-Minister believes it is the only way to restore economy
Prime-Minister of Ukraine Arseny Yatsenyuk considers it is necessary to open up government procurement opportunities to the Ukrainian enterprises, in particular, that are part of the military-industrial complex, or those engaged in the infrastructure, transport and machine-building industries, he said at the meeting occurred on May 7 during the on-site visit to Kharkov, the press-office of the Ukraine’s Cabinet of Ministers reports.
Arseny Yatsenyuk noted that Ukraine obtained the first tranche from the IMF that has already “credited to the accounts of the Ministry of Finance and National Bank of Ukraine”: “This allows us to hold our positions, to balance in the current situation. All the same, the situation remains rather serious, and the fact that we have paid salaries and retirement benefits for the two months proves it is the result of mutual efforts: regional communities and fiscal authorities, and in the first instance, entrepreneurs that paid taxes and provide job opportunities for the Ukrainians”.
According to the head of the government, the Ukrainian enterprises, in particular those of the military-industrial complex, infrastructure-, transport and mechanical engineering sectors should be given an opportunity to bid for government procurement. The Minister underscored the government procurement should cover the Malyshev Kharkov Transport & Mechanical Engineering Factory that “produces military items necessary to equip the army “.
It is also necessary that a few of factories on the territory of eastern Ukraine keep running at full capacity, “what can be a powerful spur to the development of Ukrzaliznytsia, transport infrastructure and networks”: “These enterprises should be given the all clear, a clear response they are expecting from the government, i.e. what the government will purchase this year, how much funds it is going to earmark for creating more jobs and funding salaries”.
He noted that the localization level at these factories reaches nearly 100%: «Everything is Ukrainian – metal is ours, with both technical equipment and electronics. People are ours».
«This is the only way to renovate the economy and boost its growth – to build the railways, rolling stock, roads; this implies getting a credit so that to spend the money on developing the economic sector. This is the way the US came out of recession. There are no other recipes, that is why, let’s use global best practices proven to be efficient”, - accentuated A.Yatsenyuk.
The chair of the government added that 25 billion hryvnias are estimated to be used as government guarantees. “These government guarantees should be mainly allocated in the industry. Half of the funding can help Ukrzaliznytsia to purchase railway rolling stock “, - said A.Yatsenyuk, having noted that diesel locomotives driving passenger vans are being now manufactured by the Kryukov Carriage Works.
Arseny Yatsenyuk turned to the Minister for Finance Alexander Shlapak to work out the procedure for issue of government guarantees and fundraising.
