OREANDA-NEWS. October 06, 2010. The Prime Minister of Ukraine Mykola Azarov held talks with the Vice President of the World Bank Inger Andersen. He informed her about the economic situation in Ukraine, noting the stabilization in the field of public finance and basic industries.

The Head of the Government noted that the situation remains difficult and the more problematic against the backdrop of worsening of global situation.

"We only began to emerge from recession and the positive trends should be maintained very carefully", - Mykola Azarov said.

The Prime Minister of Ukraine informed that the Government maintains the parameters of cooperation with the IMF holds the defined fiscal deficit, currency reserves are increased by a third, recovery of the banking sector grew by 6% of GDP for moderate inflation in the first 8 months of the year was reached.

Mykola Azarov underlined that the Government approach with cautious to borrowing and does not intend to increase the volume of public debt. In this regard, Ukraine has increased the urgency for investment resources and long-term loans for large-scale national programs.

The Prime Minister of Ukraine informed Inger Andersen of reforms started in Ukraine, stressing the importance of fundamental tax reform, deregulation of business conditions and preparation of social reforms.

The Head of the Government noted the high level and the importance of cooperation with the World Bank, in particular, successful projects to build infrastructure and prepare a draft law on public procurement. "We appreciate our cooperation" - Mykola Azarov emphasized.

During the negotiations, the Prime Minister of Ukraine appealed to the World Bank proposal to increase the investment portfolio for Ukraine. For the first time he suggested the World Bank to implement a global program of food supply in Ukraine, estimated at least for 10 years.

"Already in 2010 the world's grain shortage will reach 60 million tons and probably in the next 10 years the world will face food shortages. At the same time, Ukraine has the potential to produce 100 million tons of grain, so we can become part of global food security program. Other resources except the World Bank resources, which could provide such a program do not probably exist" - Mykola Azarov emphasized.

In turn, Inger Andersen stated that the proposal of the Ukrainian Government is very crucial. Agricultural production is now in the focus of post-crisis world, as global climate change drastically changed the usual picture of agricultural production. According to the Vice-President of the World Bank, serious international discussion on sustainable development of the food market is actual. She noted that the World Bank President pays special attention to this subject. Now the preparation of a new World Bank strategy for Ukraine begins, under which an ambitious idea, expressed by the Prime Minister of Ukraine, will be thoroughly examined.

"We are pleased to see a truly heroic effort by the Government, when you run a firm reform after reform. We understand how difficult this way is and be sure that the World Bank will support the Government of Ukraine on this path"- Inger Andersen said.