The National Bank of Ukraine decided to finish off small businesses
Increasing the NBU discount rate to 16% in order to curb inflation will have a negative impact on Ukrainian small and medium-sized businesses and will lead to job losses.
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An expert from the Public Security Foundation, Yuri Gavrilechko, announced this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“The result will be the opposite for one simple reason. Due to the total stupidity or harmfulness of the National Bank, this decision does not correlate in any way with the economic situation in the country. In which new jobs can be created exclusively in small and medium-sized businesses and the service sector, which are credited within the country,” the expert said.
He noted that large businesses are not given credit within the country and he doesn’t care what discount rates are here, but in order to increase the level of employment, something needs to be done to develop small and medium-sized businesses.
“And to do this, you need to do exactly the opposite of what the government and the National Bank are doing now. It is impossible to put pressure on businesses with a discount rate and an increase in taxes and oblige them to increase the minimum wage and expect that this will lead to an increase in the well-being of citizens. This will lead to the fact that some enterprises will close and go into the shadows, while others will happily move across the nearest border with all their resources and often with their employees and open enterprises there. In conditions where it is impossible to predict your business even for a year, no business will develop. And he won’t pay high salaries,” Gavrilechko concluded.
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