“It’s not easy, but it needs to be done”: IMF chief advises Ukraine not to subsidize electricity and heating tariffs
20 January 16:18
Ukraine can demonstrate good economic growth rates, but to do so, it must continue with the necessary reforms, stop subsidizing electricity and heating tariffs, and distribute the tax burden more fairly.
This was stated by Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), during a discussion entitled “Ukraine: At the Forefront of the Future” on the sidelines of the World Economic Forum in Davos, according to "Komersant Ukrainian", citing Interfax-Ukraine.
Economic recovery requires sacrifices
“Electricity and heating are still subsidized… We know why the country is doing this, but it needs to be eliminated. There is still work to be done in terms of the fiscal situation. We are currently looking at how to make the distribution of the tax burden fairer. It’s not easy, but it needs to be done,” the IMF chief stressed.
She mentioned Bulgaria’s experience, stressing that economic recovery requires sacrifices.
Staff shortages are the main problem
Georgieva noted that it is also necessary to remove all obstacles to the dynamism of the private sector and drew particular attention to security and the availability of labor.
She said that during talks with businesses in Kyiv last week, entrepreneurs cited the problem of labor shortages, which needs to be addressed, as more important than the issue of security. Therefore, the IMF is ready to provide assistance in practical matters such as the return of Ukrainians home, solving the problem of structural unemployment, and integrating veterans.
Georgieva added that it is also incredibly important for Ukraine to complete its accession to the European Union within a reasonable time frame, as this is a magnet for the Ukrainian economy to fully integrate into Europe.
“Third, you must believe in yourself like a lion. So get up in the morning and roar. Confidence matters. And I tell you from my own experience, from Bulgaria’s experience, that it will not be easy. But if you have that confidence and you demonstrate it day after day, if you put aside internal disputes, if you bury corruption once and for all, of course you will succeed,” Georgieva emphasized.
Recall that Kristalina Georgieva made a surprise visit to Kyiv last week and announced that a new $8.1 billion loan program for Ukraine is planned to be submitted to the IMF Board of Directors for approval in the coming weeks.
