On Monday President Viktor Yushchenko held a meeting with Prime Minister Yulia Tymoshenko, Verkhovna Rada Speaker Volodymyr Lytvyn, Head of the Verkhovna Rada Committee on Finance and Banking Mykola Azarov, Chief of the IMF Mission to Ukraine Ceyla Pazarbasioglu, Economist with the World Bank Pablo Saavedra, National Bank Chairman Volodymyr Stelmakh, according to President's press office.

At the meeting sides discussed restoring cooperation with the IMF.

Speaking at the meeting President Yushchenko reminded that resuming cooperation with the IMF requires a number of steps in economic policy.

First of all it is necessary to adopt two draft laws on balancing Pensions Fund and the Budget of ‘Naftogaz of Ukraine’. President Yushchenko addressed the deputies of the Verkhovna Rada with the request to support these draft laws.

The second topical issue is beginning of the program of banks recapitalization. According to Victor Yushchenko in addition to 11 banks that the National Bank had already introduced its temporary administration in, there are other banks that requested the state for support and participation in their capitals.

In order to begin mass-scale recapitalization, the alteration of legislation is necessary, said Victor Yushchenko. Pointing to the fact that National Bank and Ministry of Finance have different views on the alterations, he requested the institutions to come to an agreed draft set of alterations in a few days and submit them to the parliament.

Separately President Yushchenko reminded of the agreement to prepare a joint declaration on the support of banking system. Here he stressed that signing the document is very important because the crisis in banking sector was partially caused by lack of confidence in the banks that followed some political statements.

“Influence of the global crisis was not the key factor of what has been happening at currency market in last few months. Minimal people’s confidence in both banking system and national currency was last due to political events,” he said adding that the declaration is ready and waiting to be signed.

Viktor Yushchenko also announced discussion of a new Memorandum between Ukraine and the IMF and instructed professionals to conduct additional discussions and complete the Memorandum.


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