Ukraine economy thrown back to 2003 level, says former Finance Minister Viktor Pynzenyk

On a more optimistic note, Pynzenyk said he believes that the economy will reach the 2004 level by the yearend.

The Ukrainian currency will continue to strengthen, but not so soon.

“Unfortunately, there is now a danger of devaluation due to the growing budget deficit which stands at a mind-blowing 13%. It is a huge amount, and if the central bank is forced to cover the deficit, we’ll be faced with huge risks,” the ex-minister argued.

Turning on money-printing presses won’t be a way-out. Such virtual money won’t make Ukrainians richer and the economy more efficient. Monetary emission ruins everything by stimulating unsecured demand for goods and hard currency, he added.

Asked whether the economy can survive the presidential and parliamentary elections during the recession, Pynzenyk answered: “The economy will survive everything. It will definitely stay afloat. The only problem is at what cost and how soon. Unfortunately, elections in Ukraine are a kind of a natural calamity because politicians are loath to take any decisions.”