Kuchma addresses industrialists and entrepreneurs

Eastern Economist

KYIV - President Leonid Kuchma addressed the Eighth Council of the Ukrainian Union of Industrialists and Entrepreneurs on May 30. "Only bankrupt and shadow economy entrepreneurs may take out bank loans in Ukraine" he said, adding that loans are not available to honest and legal entrepreneurs. The president stressed that a lack of monetary resources should not be allowed to hold back economic development. He suggested the government and the National Bank of Ukraine should not make fast changes that could lead to inflation. Mr. Kuchma expressed concern about the revaluation of the hryvnia since the reevaluation in 1996-1997 led to considerable losses to Ukraine's economy. The dynamics of the currency devaluation should balance inflation, and "this is where the regulating hand of the state should be expressed" added Mr. Kuchma.

The Cabinet has not create a base for the state industrial policy and this results in "unsystematic actions and intuitive decisions," stated President Kuchma. He added that the absence of a vice prime minister for industrial policy in the Cabinet "was not positive" for the economy. Mr. Kuchma said the restoration of that produce in enterprises producing complex goods could quickly bring to life hundreds of smaller enterprises.

The president said the average wage debt in Ukraine is 743 hr. per working citizen and one in four hryvnia due for wage payments goes unpaid. Approximately 8.7 million employees or 63 percent of the total of those employed at large and medium sized enterprises do not receive their wages on time. Total wage debt as of May 10 was 6.4 billion hr, ($1.17 billion U.S.), an increase of 36.8 million hrv since the beginning of the year said Mr. Kuchma.

Copyright © The Ukrainian Weekly, July 2, 2000, No. 27, Vol. LXVIII

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