The European Bank for Reconstruction and Development (EBRD) believes that Ukraine has the most reform-minded government it has ever known, although the bank points out the necessity of taking more active steps and their support by international society, including the agreement of private creditors to restructure the country's debt, EBRD President Suma Chakrabarti has said.
“But it is also a major test for its creditors and the international community as a whole. All of the key international financial institutions, including EBRD, and key bilateral donors like Canada must put our shoulders to the wheel. And so, frankly, must the private bondholders put their shoulders to the wheel, in the restructuring of Ukraine’s debt,” he said while addressing representatives of the Ukrainian-Canadian Congress and University of Toronto.
In his speech, the transcript of which has been posted on the bank’s website, he pointed out “the progress the Ukrainian government has made in its short life so far in laying the foundations for lasting change.”
“We urge the Ukrainian government to be yet bolder… The fight against corruption and oligarchs has only just begun. That many-headed hydra will take a lot of slaying!” he said,
He said that further reform of the banking and energy sectors is crucial over the next six months. The banking system should be purified and unfair bankers should be punished, governance structures need to be improved and regulatory and supervisory powers strengthened. Amongst the work required is that corporate governance must be strengthened in state-owned energy enterprises to prevent direct or indirect capture of them by economic or politically interested groups.
“Ukraine needs to move quickly and deliver results in these areas and restore fiscal discipline. And investors will respond. The EBRD is the largest single investor in Ukraine. We will be leading the way, I can assure you,” he said.
“I am proud that last year – just at a time when many others were rushing for the exit – we invested 1.2 billion euro in the country. More than we have done in a single year since we started working there,” he said.
“The EBRD championed the creation of Ukraine’s Business Ombudsperson. This post has a key role to play in the country’s efforts to improve its investment and business climate and stamp out corruption,” he said.
