Azarov: 2011 will see stabilization and recovery from crisis

Ukraine’s Premier Mykola Azarov called 2011 the year of stabilization and recovery from the crisis. “Yes, 2011 will not be an easy year,” said Mr. Azarov. “I would call it the year of stabilization and recovery from the crisis. 2012 and the following years will be absolutely and unequivocally better.” The Premier added that the country would have to pay back loans worth nearly US $90 billion next year.

As the official stated, the Government plans to reduce the Budget deficit from this year’s 5% to 3%, as well as the Pension Fund deficit.

“That is, we are doing everything in order to live within our means. Moreover, if we follow the optimistic scenario, the Budget will definitely be reviewed and social standards will definitely be raised,” Mr. Azarov concluded.

Analysts from the Forex Club in Ukraine say that in 2011 the country will not be able to count on significant FDI inflows. At the same time, according to their forecasts, the level of FDI could grow as much as 15.7%, to US $5.4bn.

In addition, the basic principles of monetary policy next year presented by the NBU in the Verkhovna Rada are based on a forecast that Ukraine’s balance of payments deficit in 2011 will be around US $100 million.

Tags: economy