Interview with Boris Kolesnikov: “why don’t you borrow money?”

At the end of last week, the IMF agreed on the allocation of Ukraine the fourth tranche of $1 billion In the Board of the NBU predict the flow of money in March. In return, the Fund expects Ukraine to carry out reforms.

According to Finance Minister Alexander danyluk, who is visiting the United States, the top three priority reforms – pension, land market and state banks. “We need to understand what the IMF wants and what we want is a fair, balanced pension system. For this you need to carry out a pension reform which will balance the Pension Fund that there was no deficit”, – said the head of the Ministry of Finance. The Cabinet promised that the retirement age will not increase, although, according to the head of the Ministry Andrey Reva, the IMF insists on it. The hole in the Pension Fund in more than 140 billion offer to patch: ban pensioners to work (either work or receive a pension), purchase of experience for 704 UAH/month (later this information from the website of the Ministry of social policy deleted),payment of pension contributions for all workers. While this is all offers that do not feature in a single bill. According to “Today”, it is actively writing to the Cabinet and soon the law will be under the dome.

In addition, the updated Memorandum is the position on the land market. “How many years of land markets almost don’t exist in reality – de jure. In practice it is, lands are bought, sold, everything is gray, the strange schemes. We need to ensure that the land market is earned, especially for the agricultural sector”, – commented on the new Memorandum with the IMF danyluk. According to “Today”, the Cabinet of Ministers is already prepared a bill on the land market, but due to the fact that the decision is unpopular, it is not in a hurry to register in the Verkhovna Rada, continuing to keep “under wraps”. But the time is coming, the IMF recommends Ukraine to start the land market is already in 2018.

Another important reform, according to Alexander Danilyuk, true for public banks. “We as a state own 55% of the banking system. This is a very high proportion, and we need as soon as possible to improve the performance of these banks so that they do not “distort” competition and plan how to get out of these banks, because it is clear that the state can not possess 55% of the market, it harms economic development,” – said the Minister of Finance. The state share in the banking sector increased significantly after the nationalization of PrivatBank. However, with this increased debt: in February, the Cabinet capitalize “Private” for another 9.8 billion UAH.

However, the co-Chairman of the Opposition bloc and Prime Minister of the Opposition government of Boris Kolesnikov, the Cabinet of Ministers has not taken any steps to remove the salaries of Ukrainians from the shadows. But this step will help to reduce the Pension Fund deficit and to provide the Ukrainians a decent pension. In an interview with “Today,” Borys Kolesnikov has told how to speak to the IMF, which should include the reform of land market and why Ukraine should be only two state banks.

Pension reform is a long – standing recommendation of the IMF. The Cabinet has not disclosed the details of exactly what will be provide for reform, but certainly it is clear that it should reduce the Pension Fund deficit.

Yes, the authorities do not disclose information that will provide for reform. Danyluk refers to the fact that it is necessary to balance the Pension Fund. In order to balance the Pension Fund, is sufficient to “whitewash” all wages in Ukraine. Then there will be a surplus of the Pension Fund, and pension – will definitely be 3000 UAH and above. And is the direct responsibility of the Minister of Finance to achieve the 100% “white” wages. And in the context of pension reform it is possible to speak about people under the age of 40, who in 20 years will be able to create a supplementary pension. So let them learn to work or already starting to think about teaching.

– The Memorandum also includes the reform of the land market, and in fact the lifting of the moratorium on the sale of land with/x destination. According to the Minister of Finance, and now Ukraine has a “land market”, only for sale in shady schemes that breeds corruption.

– Our land is not sold and not bought. Obviously, danyluk has in mind the sale of long-term lease. In order for the land has become a commodity, we must first bring order to rent. Each shareholder of the land, and this direct work of the Ministry of Finance, Ministry of Agriculture and BP, should be able to feel what an asset he owns. That is, the rent of land should be carried out with the possibility of a monthly fee for this land, what forms for each owner of the unit (and it’s mostly the older people) additional earnings. And in 5-6 years the owners of the land will feel that you have a very valuable asset. And then we can talk about the land market. And now, when the country is in the terrible situation in 25 years of independence with the cheap assets just to give the opportunity to buy land for a pittance from people who it has worked all her life, a direct crime.

– That is necessary at the legislative level to secure the right lease with the monthly fee?

– Yes, including the right long term rental. And no amount of investment will stop. Investments in the agricultural sector is the only investment coming to Ukraine. This is the confirmation of the high liquidity of the land market.

– The Memorandum is a point and stabilize the banking system and the reform of state-owned banks. Today in the hands of the state is concentrated 55% of the banking system. Not too high a figure?

– Of course, this is bad. State banks, by and large, should be two: “Oschadbank” and “Ukreximbank”. “Oschadbank” is a tranquil haven, which can at low deposits provide risk-free Deposit. That is to protect the deposits of citizens. “Ukreksim” is another problem, and all the resources, including governmental, can be directed to something that is inherent in the title “Ukreximbank” on the export of Ukrainian goods and services, and the creation of import-substituting capacity. To “Ukreximbank” was accompanied by Ukrainian goods with high degree of processing around the world. So how do the US banks, Japan, South Korea, Germany, the UK and Italy.

– On March 4, the IMF agreed on the allocation of the next tranche to Ukraine in the amount of $1 billion At the same time, according to the Ministry of Finance, this year on external debt we have to pay 72,199 billion ($2.6 billion) foreign debt.

– May already be enough to borrow money? Minister is accountable, how he is destroying Ukraine permanently. In this moment there is a scandal with a delay of payments with the rent to 2,019 billion (companies that NABU connects with the fugitive’s Deputy from parliamentary group “people’s Will” Alexander Onishchenko. – Ed.). So, if the authorities easily defer $80 million, but beg from the IMF, $1 billion and are willing to sell for that all of Ukraine, this authorities has questions. And the efforts of civil society (which is actually two nights were on duty under the Solomensky district court of the capital, while Nasirova was elected a measure of restraint. – Ed.) you must send not for posing in front of the courts, and the monitoring and development of a complete registry delayed payments. It turns out, the Ukrainian authorities may give a deferral on amount and greater than us gives the IMF. That’s the main issue to the authorities. They take about a billion dollars, are ready to sign deadly for Ukraine things in social terms, this time signature Nasirov give 2 billion deferral (approximately $80 million). That is a tenth of that amount they can easily give only one deal, which became known to the society.

But we signed with the IMF lending program for four years, and we have to comply with the terms of the loan. Still, it’s cheap money, which allow investments to Ukraine, programs with such ambitious creditors like the EBRD, the world Bank

– Constant work with the IMF is a red light for investors, not green, says our government. If we spent years borrowing money and are unable to “jump” to the currency of the needle, so no investment in Ukraine will not come. The power is ineffective, and you could say, criminally manages the money of taxpayers. And now comes the time to return these debts. Ukraine was given a straw so she could swim. Drowned and the authorities of Ukraine together with the straw. What is the Memorandum? This is a new shameful conditions of the loan!!! Let’s get back to what we were saying. If we do all salaries officially, we’ll kill two birds with one stone: people get “white” wages and the right to a larger pension, and local governments – taxes to support part of the education and medicine that it should be. As for the earth, let people feel the earnings from the land. Take control of lease agreements and ensure monthly rent. Banks: the state has a lot of capital, 55%, but you need to look at the amount of capital and the function of state banks. “Oshadbank” should be a safe haven, a conservative Bank that guarantees deposits. And should be “Ukreximbank”. Now we buy hydrocarbons imports, instead, let’s create power for the extraction of gas and oil. This, for example, with regard to import substitution. The same can be done for drugs, food – anything that we import. Export: plant “Antonov”, ICPP and other enterprises with high degree of processing must be supported by “Ukreximbank” in the sale of equipment abroad. For example, Italy, want to buy Italian production line? Their “Eximbank” gives money to the manufacturer, the manufacturer ships abroad, and the buyer then is calculated with the manufacturer and with the Bank. Here is the promotion and protection of the business.