Yushchenko warns against 'social catastrophe'

[Adsos Letter]

Source: AFP/Yahoo

KIEV (AFP) - - Ukrainian President Viktor Yushchenko warned of a possible "social catastrophe" in Ukraine struck hard by the global economic crisis, in a televised address to the nation late Friday.

"In our country, the financial system is completely unbalanced. Ukrainian industry is halting, workers are either massively dismissed or left without salary... All this can bring about a social catastrophe," Yushchenko said.

Yushchenko also called for "immediate" amendment of the 2009 budget, which officially sets forth a deficit of three percent of GDP, as experts warned that the chasm between the budget's revenues and expenses could be much greater.

"Now the government lowered less than half of taxes and tariffs due January," and if the trend continued, "tomorrow salaries, pensions and stipends will no longer be paid" and "doctors, teachers and the military will receive no money," he charged.

Yushchenko also warned against any attempt to issue more money to finance the budget deficit, placing as usual "personal" responsibility for the economic downfall on his rival, Prime Minister Yulia Tymoshenko whom he accused of "populism."

http://sg.news.yahoo.com/afp/20090131/twl-finance-economy-ukraine-6b0205e.html