Business calls for implementation of structural reforms in Ukraine

28/ 05/ 2019

Ukraines announcement of a default would destroy macroeconomic stability, which is a guarantee for investment and economic growth. Instead, the authorities should combine efforts to continue cooperation with the IMF and conduct structural reforms that will enhance the countrys attractiveness for domestic and foreign investors. In April, the European Business Association, Dragon Capital and the Center for Economic Strategy conducted a survey of foreign investors which concluded Ukraines authorities should combine their efforts to continue cooperation with the IMF and conduct structural reforms that will enhance the countrys attractiveness for domestic and foreign investors. According to the results, the most positive steps by the new administration in the next 3-6 months can be an effective fight against corruption, appointment of professionals to key positions, deregulation and to quickly reach agreement with the IMF on further cooperation. Anna Derevyanko. the Executive Director of the European Business Association. Business expects the authorities to continue declared structural reforms. Populism and hasty decisions should not hinder development. After all, any decisions have their consequences. For investors, predictability is very important. It’s no secret that investors would avoid a defaulting country that is not able to be responsible for its commitments to international partners. This is, first of all, a reputational risk, which entails a lot of other consequences. It is very important to protect the country from the emergence of new negative factors that will destabilize the economy, slow down investment activity and reverse economic growth. The business community has repeatedly emphasized that among the basic structural changes should be - tangible steps in the fight against corruption, a fair judicial system and effective work of law-enforcement bodies. For example, according to the results of the European Business Associations Investment index, among the top issues investors point out are high levels of corruption, distrust in the judiciary, lack of land reform and the shadow economy. At the same time, almost half of respondents consider Ukraine to be a profitable investment market, and we hope this percentage will increase. Business expects the authorities to stay the course on macroeconomic stability, boosting economic growth and attracting foreign direct investment.

Ukraine’s announcement of a default would destroy macroeconomic stability, which is a guarantee for investment and economic growth. Instead, the authorities should combine efforts to continue cooperation with the IMF and conduct structural reforms that will enhance the country’s attractiveness for domestic and foreign investors.

In April, the European Business Association, Dragon Capital and the Center for Economic Strategy conducted a survey of foreign investors which concluded Ukraine’s authorities should combine their efforts to continue cooperation with the IMF and conduct structural reforms that will enhance the country’s attractiveness for domestic and foreign investors. According to the results, the most positive steps by the new administration in the next 3-6 months can be an effective fight against corruption, appointment of professionals to key positions, deregulation and to quickly reach agreement with the IMF on further cooperation.

Anna Derevyanko the Executive Director of the European Business Association

Business expects the authorities to continue declared structural reforms. Populism and hasty decisions should not hinder development. After all, any decisions have their consequences. For investors, predictability is very important. It’s no secret that investors would avoid a defaulting country that is not able to be responsible for its commitments to international partners. This is, first of all, a reputational risk, which entails a lot of other consequences.

It is very important to protect the country from the emergence of new negative factors that will destabilize the economy, slow down investment activity and reverse economic growth.

The business community has repeatedly emphasized that among the basic structural changes should be – tangible steps in the fight against corruption, a fair judicial system and effective work of law-enforcement bodies. For example, according to the results of the European Business Association’s Investment index, among the top issues investors point out are high levels of corruption, distrust in the judiciary, lack of land reform and the shadow economy. At the same time, almost half of respondents consider Ukraine to be a profitable investment market, and we hope this percentage will increase.

Business expects the authorities to stay the course on macroeconomic stability, boosting economic growth and attracting foreign direct investment.