You're reading: Ukrainian president accuses MPs of economic populism

It is unacceptable for parliamentary coalition members to use populist slogans and ideas, including of an economic character, leading to serious consequences for the state, Ukrainian President Petro Poroshenko said.

The president criticized the bill on foreign-currency loan restructuring passed by the Verkhovna Rada at a meeting of the National Reform Council under Poroshenko’s chairmanship, at which economic strategy was considered, the presidential press office said on Thursday. Deputies passed this document following populism, Poroshenko said.

“Political conjuncture shows especially now, prior to local elections. These approach of these elections drives certain politicians to sweet promises, unfulfilled dreams and open populism,” Poroshenko said.

The place of the Ukrainian Communist Party, which did not make it to the Verkhovna Rada of the new calling, is now taken by other “promisers” and the only difference is that leftist ideas are covered with a national flag, not a red one, the president said.

“Such ideas should not have a place in our coalition. We should act in accordance with the provisions of our coalition agreement,” Poroshenko said.

According to the president, from time to time populism has allowed politicians to ensure immediate social improvements for people and “get electoral cream.” However, in the long term this populism has led to an extremely high-price society and almost every Ukrainian is paying now, he said.

“The spring straightens now. They say ‘beware of Greeks bearing gifts’ for a reason,” Poroshenko said.

On July 2 the Verkhovna Rada passed a bill on restricting foreign-currency loans. After this a number of deputies said they were revoking their votes for the draft law and cases of impersonal voting were reported.

The National Bank of Ukraine said that passing the bill on compulsory conversion of currency loans at the moment of their issue (№1558-1) will lead to losses for the banking system worth approximately UAH 100 billion.

According to the memorandum of the Ukrainian authorities with the International Monetary Fund (IMF), the parties are set to support volunteer negotiating processes between borrowers and banks on restructuring currency mortgages. Due to this, the obligations of Ukraine include the president’s right to veto the bill on compulsory conversion of currency mortgages into hryvnias.