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IMF loans will not save the economy.

Кредиты МВФ не спасут экономику, - НБУTo develop and improve the state of the economy must be at the expense of industrial policy.

The International monetary Fund contribute to the financial stability of Ukraine, but they are not able to solve the structural problems of the economy. This was stated by the head of the National Bank Bohdan Danylyshyn on Facebook.

“Extension of credit from the IMF will help to preserve macroeconomic and macro-financial stability in Ukraine, will reduce the risk of hryvnia exchange rate fluctuations will facilitate the repayment of foreign debts. However, this will not solve the structural problems of the economy, will not stop its de-industrialization,” said he.

According to him, the main instrument by which the developed countries affect the state of the national economy is the industrial policy, namely measures of the state support and development of specific sectors of the national economy.

While Danylyshyn said that Ukraine needs to apply the cluster approach to industrial policy.

“We need to form clusters in such promising high tech sectors of the Ukrainian economy, like the aerospace complex, machine-tool construction, production of modern agricultural machinery. Ukrainian science should be maintained and transformed, especially its technical component to the work in the cluster”, — said the head of the NBU Council.

He puts the emphasis on agricultural production, because of agro-industrial sector in Ukraine plays a very significant role.

In addition, as an added Danylyshyn, the state should create attractive conditions for direct investments in the technology sector of the Ukrainian economy. Investments in high technology are a key element of increasing the competitiveness of Ukraine’s economy and ensuring its resilience to external shocks.

Separately, the head of the NBU Council identified the development of engineering, which can be achieved through foreign direct investment. And they in turn will be able to attract by creating attractive conditions for joint ventures between Ukrainian and international companies, in particular tax incentives.

“In order to attract foreign investment, it is advisable to establish reduction factors to the size of certain taxes depending on the number of jobs created related to the project, or depending on the volume of exports of high-tech products produced in these enterprises”, — said Danilin.

He also insists on dramatic improvements in the promotion of Ukrainian exports and the development of public-private partnerships, especially in infrastructure.

The economic reforms in the country, in his opinion, should deal with the Ukrainians, as they thoroughly know the “anatomy and physiology”, value system, socio-economic, genetics, the economy and society to be reformed.

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