It is important to introduce administrative, budget and fiscal reforms to develop Ukrainian regions, Victor Yushchenko said in Sumy on Friday, President’s press office informs.

The President told a press conference these reforms were aimed at redirecting resources to the regions, and said almost 60% of the European Union’s budget was spent by local communities.

He said Sumy was not a “depressed territory,” adding that reasonable macroeconomic policies helped secureeconomic growth, which “benefits both Sumy and the region.”

He said the VAT rebate problem was one of the greatest challenges facing the regions and described the government’s current UAH 8 billion VAT debt as a “dangerous symptom reminiscent of 2004.”

Yushchenko said our countryalso needs policies encouraging investment and a “clear” privatization plan.


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