Azarov again slams banking system for weak lending to economy

Prime Minister of Ukraine Mykola Azarov, who in late October accused the banks of pursuing a "consumer" model of participation in the economy, after a meeting between the president of Ukraine and industrialists on November 12 again criticized the banking system for its slow rate of crediting, and unfavorable conditions for lending.

"The banking system has not taken on its part of the responsibility for the recovery of the economy. The economy is gasping without 'live' funds," he said, opening a meeting of the Cabinet of Ministers in Kyiv on Wednesday.

Azarov said Ukrainian enterprises cannot compete with European ones when the cost of borrowing in the EU is 1.5%, and in Ukraine more than 20%.

According to him, at the meeting the head of state proposed the National Bank of Ukraine jointly with the government take all measures to reduce the cost of credits.

"The National Bank should ensure the most efficient use of the discount rate mechanism to revive the economy," the premier said.