Experts: Talks with IMF to be first test for new government

The restoration of economic growth and cooperation with the International Monetary Fund (IMF) are the main tasks for the new government, according to experts polled by Interfax-Ukraine.

"These are the main tasks for the first hundred days. If the new government does not resolve them, it will prove its incapacity and may sink into oblivion very soon," Head of Research at Investment Capital Ukraine (ICU) Alexander Valchyshen said.

"If it manages to reach an agreement with the IMF, this will be equivalent to a five-point mark on a five-point scale, and if a contract is signed with the Kremlin, this will be a two-point mark," he added.

Valchyshen said that the president had appointed a lot of new people in the government in order to stimulate the economy, as it sharply declined in the second half of 2012.

A managing partner at the Capital Times investment company, Erik Naiman, said that the new composition of the government was a sign of continuity of government.

"It is very likely that Serhiy Arbuzov, who will now receive the necessary experience at a senior post in the Cabinet of Ministers, will be the next prime minister," he said.

The expert also noted that continuity of government was a positive factor for foreign investors, as it reduces the effect of surprise.

"The presence of stable rules of the game, though not ideal, is also a kind of a plus. However, new investments are needed to attract more investment," Naiman said.

VTB Capital economist Dmitri Fedotkin also said that it was unnecessary to expect a particular reaction from the IMF and foreign investors to the new composition of the Ukrainian government, as there are few new people, and, for example, Serhiy Arbuzov, is well known for his work in the National Bank of Ukraine.

"It's not important for the IMF with whom it works. The main thing is to ensure that the new government is ready to fulfill its obligations," he said.

Fedotkin said that the creation of the Income and Tax Ministry was designed to preserve and improve the collection of taxes and other payments to the state treasury, which is an important task for Ukraine next year.

Naiman, in turn, said that the creation of the Income and Tax Ministry would have a positive effect on the filling of the state budget, particularly in the taxation of export-import operations.