The Prime Minister Volodymyr Groysman in an interview with Bloomberg said that this year Ukraine expects to receive financial assistance of $12 billion. Will it be enough for the payment of the promised Groisman Ukrainians salaries in the amount of 1000 euros?
“The head of government of Ukraine expects the country will receive $12 billion in international aid this year. This figure includes $4 billion loan from the IMF, as well as funds that should be directed to Ukraine under bilateral agreements, including with the U.S. government” – writes Bloomberg.
Perhaps this news is the quintessence of the most striking statements, made by him since taking up the post of head of government. Up to this point all loud statements concerned the most important issues in the life of the country and its people. For example, former speaker of the Verkhovna Rada promised to fight corruption in the energy sector, to create conditions for the attraction and protection of foreign investment. He promised to set fair prices for medicines, to arm the Ukrainian fleet with the most modern weapons. Promised to withdraw completely from the import of gas, began production of its own.
As a speaker Groysman assured Ukrainians in visa-free regime with the EU starting from 1 January 2016, and in the middle of the year, and not waiting for its repeal, promised Ukraine’s accession to the European Union. Though not from January 1, 2017, and just in case of stock – in 10 years.
The funny thing a statement a follower Yatsenyuk made in may, stating that the average salary at the level of one thousand Euro in Ukraine – a reality. “If we take our European partners, we see that the average wage in these countries, such as Poland or Slovakia, equal to approximately 1 thousand euros, when in Ukraine it is about 150-170 euros. We are aware that, in principle, having enormous potential, natural resources, with proper, quality control can Ukraine achieve these figures, it will mean that we can become competitive and people will start to get opportunities for quality of life”, – says then Groysman.
Sounded promising in a country where real wages and real disposable incomes over two years fell by 20%, and the average wages in dollar terms fell by half – from 400$ to less than$ 200. Better said, sounded fantastic. Promising it would be a statement of the income growth on the level of 2013 to the summer Olympic games of 2020. Indeed, provided that Ukraine according to state statistics service in 2015 estimated at about 16.5 million people employed, the average salary is 150 euros a year is required to send to the wages of Ukrainians in the order of 29.7 billion euros or 35% of GDP. Well, if you raise the salary up to 1000 Euro? Then these good intentions need to be 198 billion euros per year, provided that Ukraine’s GDP in 2015 came in at 93.2 billion euros.
Although on the scale of populism does not have the mark, which reached Groysman with such assurances, however, since statements a month and a half I would like to hear at least some hints on how the government of the new Prime Minister is going to move towards such a high goal. Among a number of promises that already require the construction GDP in the square, at the end of June, it was reported that Ukraine expects IMF tranche of $ 1.7$ billion, was Curious collateral review Groisman: “And then the government will decide on our further steps.”
It sounded very strange. That is, without the tranche, which does not even compensate for growing up for the past year military spending, the government can not “make further steps”? And then came the news that Ukraine in the amount of waiting for the Western sponsors of loans by 12 billion dollars. After this apparently has to freeze everything, and not what not to take “further steps,” and stop breathing.
However in reality all the sadder. In order to get at least a penny and a half billion from the IMF, the Ukrainian authorities will have to carry out pension reform, the purpose of which is to increase the retirement age. Although the authorities had assured that this will not happen. However, as explained by the economic Advisor to the Prime Minister Ivan Miklos, “will have to make more unpopular laws” to continue the relationship with the IMF.
He and his chief Groisman forgot to add that all these burdens, including another increase of prices for housing and communal services, it is necessary to endure to raise the average salary to 1,000 euros. In the meantime, even if you give away $ 12 billion of loans for each working Ukrainian, you get a 727 dollars and only once, and he is in debt a large percentage…
