OREANDA-NEWS. The International Monetary Fund (IMF) experts told about the factors hindering the growth of the economy in Ukraine.

“Growth is held back by a weak business environment – with shortcomings in the legal framework, pervasive corruption, and large parts of the economy dominated by inefficient state-owned enterprises or by oligarchs – deterring competition and investment,” the report says.

The specialists noted that the rate of economic growth in the country is too low and does not allow to narrow the gap between income levels in Ukraine and in neighbor countries. The creation of new anti-corruption institutions also did not bring any “tangible results”.

It is emphasized that a low level of investment due to bad business conditions limits the productivity growth and jobs creation in the private sector, that is why many citizens are trying to find jobs outside Ukraine.

According to the IMF, the discussion of the assistance program requested by Ukraine, will continue in the coming weeks.

A day earlier, on September 26, it was reported that Ukraine and the IMF would not agree on a new loan program.

On September 15, the Government of Ukraine approved a draft budget for 2020 with a forecast of GDP growth of 3.3 % and inflation of 6 %. The bill “On the State Budget of Ukraine for 2020” was introduced to the Verkhovna Rada. The draft law states that the goal of the country’s debt policy will be to reduce the ratio of public debt to GDP to 46.7 % at the end of 2020. It is noted that to achieve the goal will help to reduce the state budget deficit to 2.09% of GDP. To pay off the state debt of the country in the same year should go 292.9 billion hryvnias (11.8 billion US dollars).

On September 20, the President of Ukraine Volodymyr Zelensky discussed with the Deputy Director of the IMF European Department Yulia Kozak and the head of the IMF mission in the country Ron van Rooden further reforms and cooperation.