(RTTNews) - Ukrainian policymakers must to try to forge a consensus to support economic recovery and avoid measures that would fuel inflation and unemployment, International Monetary Fund Mission Chief for Ukraine, Ceyla Pazarbasioglu, said in an interview with IMF Survey magazine.

“Ukraine is still in a highly fragile position,” Pazarbasioglu said. “Lingering uncertainty is damaging for confidence and could derail recovery.”

The IMF official said the Fund’s supportive measures for the country has helped the nation to overcome the worst of the crisis. Ukraine was one of the hardest hit among the countries affected by the global crisis.

“Ukraine still has a long way to go, of course, which is why it is crucial to continue with sound policies,” the IMF official said adding that the deep recession has created large pressures on the country’s public finances-something that needs to be watched closely so that recovery is not threatened. According to the official, the draft 2010 budget submitted by the Ukraine government would lead to a deficit of 8% of GDP, which is far above the IMF programme commitments.

“In addition to pushing up interest rates, a deficit of this size would be very difficult to finance without resorting to inflation. Measures to reduce this are under discussion, but require consensus.”

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