Wednesday
26 march 2008
21:24
Compensations paid out by Tymoshenko government may soon be eaten up by inflation, Taras Statskiv warns
While on a visit to Rivne, lawmaker Taras Stetskiv described as serious the situation on Ukraine’s finance market. A strengthening hryvnia against the backdrop of inflation is an utter absurdity, he told ZIK March 26. -“The government is doing something wrong. First, this situation hits exporters. Second, it dents the cash flow. In the first two months of 2008 inflation was 5.2%. It is half of the government-set ceiling. If the government doesn’t support the dollar rate, it will be faced with large cash shortfalls at the yearend. If the inflation is not kept in check, Ukrainians will soon forget about Hr 1,000 in compensations for their lost savings which the Tymoshenko government paid them in Q1, Stetskiv warned.
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