It is necessary to achieve economic growth of at least 5-7% – Pasenyuk
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It is necessary to achieve economic growth of at least 5-7% – Pasenyuk
The growth of Ukraine’s economy to 5-7% for several years, will significantly improve standards and the quality of life of the population.
This said group managing Director ICU, Makar Pasenyuk in an interview ЛІГА.net. He recalled that the IMF expects an increase of GDP growth of 2.5% in 2017, 3% in 2018, 3.5% in 2019, 4% in 2020-2021 years.
“It’s good if you compare with the world economy, it is above average. But for us it is extremely small, on the back of this growth not to continue to feel the deterioration of standards and quality of life, − said M. Pasenyuk.- The feelings were different, it is necessary to achieve growth of at least 5-7% and preferably several years. We’re talking about growth rate, this should be a staple in the country. To get the economy growing, people must want to invest money here and must be object of investment”.
In the opinion of the investment banker to achieve such a high figure possible. Sources for the growth of the Ukrainian economy are direct investments, privatization, infrastructure projects, sale of assets of the Deposit guarantee Fund of individuals (fgvfl).
He believes that the privatization of most state assets will bring in the economy of Ukraine up to 1 billion dollars and will not have a significant effect on GDP growth.
“Privatization of all major facilities will bring up to $ 1 billion. And in the background of our 100 billion, GDP is the sum of nothing, ‘ said Pasenyuk.- Need direct investment, and the sooner they appear, the less we will have anger on the government. But in my mind the main task of the government to do something, the economy has begun to grow.”
For foreign direct investment, he said, there must be clear rules of the game, a working judicial system and the extensive list of assets for investment and privatization.
“In fact, there are lots of people who are willing to invest. They need projects and understanding how they own, let the 30-year-old money from here out, said M. Pasenyuk, Even projects with payback period of 30 years will be of interest to strategists, if they are properly packaged. Strategists – I mean those pension funds. Pension funds must generate a refund. In Europe and the us, a positive return is rare. As long as this situation prevails, they need to tighten up here, because 3 or 5% yield given the potential growth may not be such a bad investment.”
The investment banker also believes that one of the key areas of the resuscitation of the economy may be a sale of the assets of the Fund.
“The real value of these assets is at the level of 4-6 billion dollars. The beauty of these assets is that selling them, we stimulate the restart of the economy, he said. Why is the US economy faster out of the crisis? All these processes are automated. Not paid –bankruptcy-sold-goodbye – copied-forgot-move. In the bankruptcy process, you can ward rather negligent of the owner, of a new, more effective, which will invest and develop the asset, to generate jobs, pay taxes”.