World Bank waiting for change of Ukraine’s government

A World Bank mission has completed its visit to Ukraine on February 15. After the visit, the mission decided not to grant another loan to Ukraine until a new government is formed in the country (the elections are scheduled for March 31). The information was provided by World Bank Director for Ukraine and Belarus Luca Barbone.

The mission has approved of the work of Ukraine’s government in many spheres. Barbone admits that considerable success has been achieved in the agricultural sector. Despite this fact, the World Bank admits that nothing has changed in the coal industrial sector, although it received considerable financing from international financial organizations.

Luca Barbone said, “We do not comprehend the governmental policy in the coal sector. The sphere is still sufficiently financed, but its efficiency is the lowest in Europe. The government should close unprofitable mines, not subsidize them.” At that, Mr.Barbone did not suggest any other sources for fuel purchase for thermoelectric power stations that provide 45% of electricity on the domestic market.

The World Bank and Ukraine are more likely to develop further co-operation, as Ukraine needs financial support. The World Bank chairman said that crediting to Russia will be suspended, because the country disposes of rich natural resources.

Barbone’s last statement should surprise those people who understand geography. He said that some of Ukraine’s mineral resources are the richest in Europe. However, even countries with smaller mineral resources sometimes give up cooperation with the World Bank, the Czech Republic for example. The country prefers private investors to the World Bank, because they do not impose political demands while granting loans. However, the natural resources of the country are much smaller than in Ukraine.

Alexander Gorobets PRAVDA.Ru Kiev Ukraine

Translated by Maria Gousseva

In the photo: WB Director for Ukraine and Belarus Luca Barbone

Read the original in Russian: http://www.pravda.ru/main/2002/02/15/37138.html