If USD 100 billion came into Ukraine this month, it would not be able to use it because of lack of institutions – IMF Deputy Executive Director Rashkovan
For investment to flow into Ukraine after the war ends, the country needs to build institutions.
As reported by Censor.NET, IMF Deputy Executive Director Vladyslav Rashkovan said this, according to the Centre for Economic Strategy.
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According to him, aside from the war, the IMF now sees three major problems.
"One is the energy problem, because we will not have enough capacity. Even if the war ends, we need more energy capacity for growth. And the second is the lack of labor force. At least 5-6 million people have left or are in the occupied territories. And how to bring them back is a big part of the country's economic policy. You are also working on this, thank you for that.
But the third problem is building institutions. Because any postwar reconstruction - let me put it this way - will require investment. And investment will go where there are institutions. Again, economists and the IMF say this," he explained.
Rashkovan stressed that for Ukraine to move forward, it needs to build institutions, strengthen its investment appeal and develop its domestic ecosystem.
"If USD 100 billion came to Ukraine this month for investment, Ukraine would not even be able to spend it. Even if USD 40 billion came, it would not be able to. But we need it both to rebuild the energy sector and to rebuild and build new cities," he added.
