President Viktor Yushchenko has voiced alarm with the possibility of a return of barter payments to the Ukrainian economy, Iryna Vannikova, his press secretary has said, according to Kyiv Post press service.

"One example could be the cabinet decision to allow coalmines, energy and railway companies to carry out mutual payments. Misuse of the mechanism brings the risk of considerable economic losses, a fall in payment discipline the non-payment of funds to the budget, and their redistribution on the shadow market," Vannikova said on Thursday.

Vannikova said that the head of state called on the government to take measures not to allow the return of barter to the Ukrainian economy.

"The removal of the barter system in 2000 when Yuschenko was prime minister revived economic activity and provided funds to the budget, which were used to pay wage and pension debts," she said.


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