Read the original text at 112.ua.
During the Ukrainian Financial Forum, organized by the ICU investment group in Odesa, three participants, well-known financiers, Timothy Ash, John Pennell, and Neil M. Lancastle answered a question of what Ukraine should do to become attractive to Western investors.
Timothy Ash, BlueBay Asset Management. Senior EM sovereign strategist
The variety of the investors surprises. For example, last week, portfolio investors have bought Ukrainian Eurobonds, because they give very attractive profits. But for Ukraine, direct foreign investments are more important, that is, those investors who build factories and create jobs. For them, Ukraine is not very attractive so far, because there are many difficulties, including high level of corruption.
In fact, these are different things. If you are dealing with Eurobonds that you bought today, and tomorrow you can sell them – it is one thing, but if you are building a factory – this is quite another thing. This means that you really take a responsibility to stay in Ukraine.
Of course, fight against corruption will make Ukraine more attractive to investors, because those foreign investors who have already opened their business in Ukraine, have faced bad experience precisely because of corruption and bureaucracy. You just need to create a friendly investment climate for them. In fact, something must be done with this. People did something illegal, they were involved in corruption, they should bear responsibility for this, they should understand that they would be convicted for illegal actions. The law should be the same for everyone, regardless of whether you are a famous capitalist or you are a small businessman. This thing should change.
It seems that nobody is imprisoned in Ukraine at all. Remember, during the Orange Revolution, one of the slogans was "the bandits should be in prison," but not a single bandit is in jail.
John Pennell, Deputy Mission Director at USAID Regional Mission for Ukraine, Belarus and Moldova
First, I think a certain legal security should be ensured in this country. What do I meant? If the investor is really interested in doing business in Ukraine, he should be able to withdraw from Ukraine his profit, receive as a result of his activities.
And, of course, all this requires further reforms in the judicial branch of government, and in overcoming corruption. There should be an alternative solution to the disputes, problems and complexities that arise in the environment of entrepreneurs.
Dr Neil M. Lancastle, De Montfort University, UK
Many people want to know about the national debt of the country, because the problem is that when you have a big debt, this can lead to a financial crisis. In order to attract large investments, you need to provide investors with transparency and guarantees, because people like me who invest in a pension fund are interested in transparency and security.
We need to create a situation that attracts investments. In order for investors to be long-term, it is necessary that everything be transparent so that everything works with clear rules. Otherwise, the investors will be uninteresting.
I have heard a lot about pension reform in Ukraine. The UK has held pension reform; there were many who won, and many who lost. Therefore, you need a powerful policy supported by people, otherwise this is just accumulating of another problems.
The annual Ukrainian Financial Forum 2017 has opened in Odesa and it will take place on September 20-21. The forum gathered the record number of the participators. More than 300 representatives of the financial market, international and Ukrainian experts, investors and representatives of authority will discuss the perspectives of the development of the national and world economy, the reforms in Ukraine and creation of the conditions for the investments’ growth.
Ukrainian Financial Forum traditionally organized by the investment group ICU that is the independent investment and consulting group that specializes in the markets of Central and Eastern Europe. This year Kyiv school of Economy, Bloomberg, USAID and Association of Ukrainian Fund Traders became the partners of the ICU.
The program of the forum contained twelve panel discussions:
-World finances and their role in the development of the global economy: the EU after Brexit, the US and China. How stable the global reconstruction is?;
-Promotion of the reforms in Ukraine – speed, succeeds and failures;
-Ukraine, its place in the world economy – the point of the generation of the breakthrough growth;
- Commercial stock trading: realities of the present and future;
- Ukraine, macroeconomic and financial situation, analysis of achievements and perspectives;
- Distressed assets and non-performing loans – managing, sale;
- Pension reform as one of the key drivers of the growth of the financial market of Ukraine;
- Currency liberalization, regulation of financial markets, BEPS;
- Corporate governance and compliance of financial sector;
- Infrastructure of the markets, capitals, financial tools;
- Market of digital currency and digital securities: possibilities and threats.