President Viktor Yushchenko held a meeting of the Consultative Council on Foreign Investments, presidential press office reported.
"The
dialogue with investors, the establishment of a legislative field that
would have attracted international and national investors is very
important for the economy of Ukraine, " said Yushchenko in his
opening remarks.
The President noted that among the promising sectors of the
Ukrainian economy are energy, infrastructure, road construction and
agro-industrial complex. Speaking about the latter, President
Yushchenko said that full efficient land market is necessary in order
to attract investors to the Ukrainian agriculture.
Yushchenko noted that due to internal economic and political changes
that have happened in the last 4 years the investment in Ukrainian
economy grew from $8.6 billion (January 1, 2005 data) to $ 38 billion.
During this time, he said, Ukraine has also made progress in the
integration into international economic institutions. "For us, the most
important document, which reflects our strategy is the economic
integration into the European Union," said Victor Yushchenko.
The
President reminded that three-quarters of talks have been completed on
the Free Trade agreement, and the talks on united energy system and
joining the European Energy Association are continuing.
Viktor
Yushchenko praised the dynamics of cooperation between Ukraine and such
global financial institutions as the International Monetary Fund and
the World Bank, European Bank for Reconstruction and Development,
European Investment Bank. "We currently have a key package of relations
with leading financial institutions," said the President.
Yushchenko praised the actions of the National Bank to
stabilize the national currency under the global financial recession.
"The robust monetary policy, to which the National Bank has returned in
recent months, gives positive results evident today. We have a stable
currency and freely functioning foreign exchange market virtually
without intervention of the National Bank," he said.
Among
the problems that have arisen in the Government budget and
privatization policies, President Yushchenko mentioned the unmanageable
budget deficit, which by experts’ estimates may reach 120-130 billion.
"The
problem is around 120 - 130 billion. In fact, 50% of the budget in 2009
has no real income. This is a key challenge for the prices, for social
and political stability. We have one of the worst budgets – the
political budget, rather than the economic, which obviously cannot be
anti-recessionary budget," said the President.
Fiscal policy has also been hampering investment growth, the President said, particularly with no transparent scheme for VAT return and collection of taxes in advance. He promised that he would submit the suggestions, made during the meeting on this issue for the consideration of the parliamentary majority and the Government to change the situation for the better.
The President also criticized the privatization policy and gave the unfortunate example of the recent attempt to sell the Odessa Port Plant. "Today we have a Government that cannot conduct good privatization of such a facility honestly, lawfully and objectively. Too much political and private interests involved in such projects," stated the President. For this reason, Yushchenko explained , in the last half of the year the Government has not held any major privatization.
