IMF Managing Director Dominique Strauss-Kahn believes the current pace of Ukrainian inflation poses a threat to the competitive capacities of the country in the long-term outlook.
He gave his opinion at the fifth summit of the Yalta European Strategy (YES) in Yalta, Crimea.
In his opinion, the best remedies for the situation are weaker pegging to the dollar in the monetary policies and the political stabilization in the country.
He said Ukraine could maintain its competitive capacities for only a short time in the environment of the current inflation in the country, which he described as catastrophic inflation.
Strauss-Kahn added the current rate of inflation might have long-lasting economic consequences for the country.
Strauss-Kahn further said the International Monetary Fund would update its global outlook late in July to present the real scope of the world crisis.
He said the economy of the United States had demonstrated some improvements lately with some positive consequences for Europe.
"Hopefully, these processes will have some positive influences on the situation in Ukraine," he added.
As Ukrainian News earlier reported, IMF Managing Director Strauss-Kahn supports the course of the Cabinet of Ministers in economic reforms.
The Cabinet of Ministers has worsened the inflation forecast for 2008 to 15.9% from 15.3%.
The fourth summit of the Yalta European Strategy took place in Yalta in early July 2007.
The Yalta European Strategy is an international structure facilitating Ukraine's development, advocating Ukraine in the world as an open country, and supporting Ukraine's joining the European Union.
At present, the YES board also includes member of the British parliament Steven Byers (board chairman), member of the Portuguese parliament Mario David, YES founder Viktor Pinchuk, member of the European Parliament Marek Siwiec, former head of the Rothschild Fund's Jean-Pierre Saltiel, program director of the German Council on Foreign Policy's Alexander Rahr, and Stephane Fouks, the executive director of the French bureau of Euro RSCG Worldwide.
