Ukraine's Finance Minister tenders resignation

Yesterday Ukrainian Finance Minister Viktor Pynzenyk submitted a letter of resignation to the Verkhovna Rada. Pynzenyk said that he could not reconcile himself to abandon a balanced budget with a minimum deficit, realistic revenue sources and limits on government borrowing. He has held the post since Dec. 2007. Verkhovna Rada Speaker Volodymyr Lyvtyn told reporters later that he believed parliament would support the resignation. Prime Minister Yulia Tymoshenko was quoted as saying that a replacement would be appointed soon. She added that Pynzenyk has not been acting as finance minister yet this year due to health reasons. Pynzenyk did not present the 2009 budget law to parliament that was ultimately passed with a UAH 28.1 bln deficit (2.8% of GDP, applying Concorde Capital’s GDP forecast), as is his responsibility by law due to health reasons. Media reports indicated potential replacements were Sergiy Tihipko, a former National Bank of Ukraine head; Igor Yushko, a former Finance Minister; Sergiy Terekhin; Ivan Kirilenko and Igor Chugunov.