Regions blow whistle on alleged monetary emission by cabinet

December12200822:14

“The cabinet has engaged in risky ways to find cash to fund its programs. It has printed 6 billion hryvnia worth of cash and domestic bonds, something M. Chechetov, a Regions lawmaker, said will speed up inflation in the country, Party of Regions press service says.

According to Chechetov, the cabinet demonstrated its inefficiency and unprofessionalism in its clumsy efforts to fight economic and financial recession. There is no economic program for 2009, nor any macroeconomic prognosis or draft 2009 budget. Consequently, the cabinet has no tools to implement any anti-crisis program, the lawmaker said in parliament Dec. 12.

The cabinet’s isolated attempts to harness recession (like the anti-crisis law or the law on bank’s recapitalization) have been mostly declarative and won’t have any effect.

“The anti-crisis law will not stabilize the finance sector. The cabinet’s decision to regulate banks’ stabilization find remains a hollow promise as there is no money in the fund,” M. Chechetov lashed out.

Commenting on the cabinet’s practice of signing memorandums with specific industry sectors on anti-inflationary measures, he called it mere electioneering.

“Instead of supporting a specific industry sector, the cabinet tries to keep the inflation and unemployment in check using administrative measures. Real support to businesses has given way to open administrative pressure. That is why they have zero end result,” the lawmaker concluded.