KIEV: The European Bank for Reconstruction and Development (EBRD) will continue actively investing into the Ukrainian economy on conditions that three branches of power work as one team, progress in reforms and political stability is achieved, EBRD Managing Director for Eastern Europe and the Caucasus Francis Malige has said.
In 2015, the EBRD reached EUR 1 billion of investment and the bank would try to have the same indicators this year, he told reporters on Wednesday.
Success will depend on the effective operation of all branches of power and reforms, otherwise it would be unlikely that the bank would operate actively in the country, he said. The team of reformers in the government with desire of conducting reforms does not have enough tools to implement them, he said.
The fact that the government remains fuels confidence that the team aimed at reforms would get a chance of going on the way of these reforms that are being realized in tight cooperation with international financial institutions (IFIs), Malige said.
He added that success of EBRD’s investment in Ukraine in 2015 linked to the implemented reforms that allowed the bank to work under the planned programs both with public and private sectors. He pointed at reforms in the banking and energy sectors, especially the transformation of Naftogaz Ukrainy.
Agriculture (including logistics and retail) is an important sector for the Ukrainian economy, as well as the infrastructure sector. The bank plans to continue working in these sectors, he said.
Malige noted that operation of court and executive systems should be improved, so that investors were more confident that their money is protected. According to the EBRD’s assessments as of late 2015, Ukraine’s GDP growth will be 2% in 2016. Malige said that the forecast will be revised in early May, taking into account the situation in the country.
