KYIV. Sept 30 (Interfax-Ukraine) – An international guarantee fund need to be created in Ukraine to attract investors, head of Paribas Representative Office in Ukraine Dominique Menu has said.
“We need to build an international fund of guarantees so that those who invest their money in Ukraine will be insured. We’re working on this idea, and I hope that in some weeks we’ll be able to approve it with international financial institutions [namely the European Bank for Reconstruction and Development and the International Finance Corporation],” he said at a Financial Club conference on collateral property in banking.
Currently, international financial organizations have offered new loans to repay old ones, Menu said. However, Ukraine should look for ways to finance new projects in real estate, infrastructure and logistics, so that the country’s economy can begin to develop rapidly, he said.
Menu also stressed the importance of legislative reform and change in the judicial system, and in particular, that changes in the judicial system are needed to regulate investment in bank collateral property.
“If we can not protect our right, we can not act. We are also waiting for a full-fledged cadastre to understand who a client is and where he has got the money,” he added.