The Law of Ukraine

The Law of Ukraine "On State Budget of Ukraine for 2009" contains a provision that government bonds are subject to mandatory redemption of Ukraine National Bank of Ukraine at their nominal value within three banking days after receipt of proposals for their redemption from banks (Article 84). In addition, Article 85 states that in the event of shortfall in general fund revenues of the state budget according to the monthly painting for holding the protected articles of the state budget to allow the Cabinet of Ministers of Ukraine to carry out government borrowing in excess of amounts set out in Annex 2 to this Act with a corresponding adjustment to limit the amount of state Ukraine's debt as defined in Article 11 of this Act. The volume of government borrowing made the Ministry of Finance increased the figures of financing the state budget in excess of amounts approved in Appendix 2 to this Act. These provisions could trigger increased inflationary pressures. However, high inflation, on the one hand, it "eats" good intentions the power to raise social standards (if within 11 months of 2007 with an increase of nominal income growth of 29.9% real 12.5%, in January - November 2008 with an increase of nominal income Ukrainian 40.1% growth of real total was 11.4%), and on the other - reduces the competitiveness of Ukrainian economy. [20] In this context, the proclaimed intention of the nominal minimum wage in 2009 will further increase confidence in the declarations of the Ukrainian authorities (Government) regarding the ability to overcome inflation and restore financial stability. Category: Bankovskie sistemy