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Expert: Resignation of Cabinet of Ministers to Lead to Hryvnia Devaluation and Suspension of Cooperation with IMF

Tuesday, 16 February 2016 17:25

The government resignation will lead to ceasing of initiated reforms, suspension of IMF lending and further hryvnia devaluation, the economist, the chairman of public organization “Ukrainian Community of Economic Freedoms” Marian Zablotskyi said in his blog, RBC-Ukraine reports.  

“Today, the government’s report is the culmination of long months of destabilization of the political and economic situation in Ukraine”, he said.

“The resignation of government and impossibility of appointment of new government almost means the pre-term parliamentarian elections. This will lead to suspension of current reform initiatives, suspension of lending from IMF for an indefinite term, further hryvnia devaluation”, the economist emphasized.

Zablotskyi noted that we already have problems with IMF and hryvnia rate today, the main reason for which is the current political instability.

“That’s why for all participants of current political struggles and mutual trolling there is not any other way out, except for to sit down for the talks and negotiate” – he thinks.

The expert also indicated issues in cooperation of government and the Verkhovna Rada. In particular, the parliament considered less than a half of draft laws, submitted by the government.

“The main reason for low performance is the small number of efficient days for voting in the Verkhovna Rada. There are just 4-5 of such days in one month”, he noted.

“Secondly, the level of cooperation inside the coalition for endorsement of governmental draft laws can be evidently better. Thus, in general, 45% of draft laws, submitted by the government, were considered. Each fourth out of submitted draft laws was rejected and sent for amending. At the same time 63% of presidential draft laws were considered, out of which only 1% was rejected”, - Zablotkyi said.

In addition, he emphasized that corruption on state enterprises can be fought off by the only way – by their privatization.

“But, unfortunately, the privatization constantly does not win any endorsement in the parliament”, the economist noted.  

 

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