President Yushchenko believes that governmental consultations between Ukraine and Russia on a loan of 5 billion dollars to cover the new gas price are continuation of government’s futile policy and should not be conducted in an underhand way. He told a press conference in Ivano-Frankivsk.

He also expressed opinion that the talks prove that the Government is unable to manage huge budgetary deficit. According to the President this deficit estimates at 31 billion hryvnyas with additional 45 billion planned for recapitalization of banking system.

Viktor Yushchenko urged the Government to abandon such budgetary policy, warning that such large deficit would result in inflation.

Returning to the subject on tlaks with Russia on the loan President Yushchenko said that he would not approve directives for such a talks but added that it is early to make any substaintial comments before this question is raised officially.


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