IMF Recommending That Ukraine Step Up Efforts To Lower Inflation

KIEV, Ukraine -- The International Monetary Fund is recommending that Ukraine step up its efforts to lower the rate of inflation and stabilize prices.

This stated in a statement that the International Monetary Fund issued at the end of the IMF mission's visit to Ukraine that took place from June 1 to 7.

National Bank of Ukraine

"From the mission's point of view, restoration of a low and stable rate of inflation is the most pressing macroeconomic challenge facing Ukraine," the statement said.

The IMF is concerned about the rise of inflation in Ukraine since 2003.

"This indicator is presently about 15% in annual terms," the statement said.

The International Monetary Fund is recommending that Ukraine take the following measures in order to keep the inflation rate in single digits: step up its monetary policy, including a more flexible exchange rate; implement a fiscal policy aimed at implementing the budget; accelerate the implementation of structural reforms aimed at building a market economy and creating a favorable investment climate.

The fund is also recommending that the government and the National Bank of Ukraine implement a coordinated economic policy and avoid contradictory public statements.

The IMF believes that delay in adopting such measures increases the risk of a further acceleration of inflation, which may complicate the prospects for economic growth in Ukraine in the medium-term.

As Ukrainian News earlier reported, President Viktor Yuschenko focused attention on the need for investments in eradication of the shadow economy, fighting corruption, entrenching the rule of law, and raising social standards in Ukraine during meetings with delegations from the International Monetary Fund.

Source: Ukraine News