Bankers fear new finance minister will promote hryvnia printing

13:57

Fedir Yaroshenko at the post of the Finance Minister would firmly realize ideas of new premier Mykola Azarov, although it is unlikely that he would settle budget problems without printing hryvnias, according to Ukrainian bankers polled by Interfax-Ukraine on Thursday.

"The new finance minister is not a reformer. The finance ministry will have to balance between tightening belts due to restricted revenues of the budget and printing money to close gaps in the social sphere, as the country's economy is hit by crisis," a top manager of one of the banks said.

"The new finance minister is a technical figure. One could expect from the finance ministry first restricted and later more money printing, which could fuel inflation," an expert at another credit and financial institution said.

"The new finance minister will be notable for taking tough administrative measures. It's no doubt that he will be goal-oriented in carrying out the tasks set by the premier," a board chairman of one of the banks said.

The financiers said that it was better to have a finance minister than be without one.

"I think that the situation will be more stable. The formation of the government is a good signal to the domestic and foreign markets," one of the financiers said.

12.03.2010