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6.1.4 Budget dynamics - privatisation
The government has accelerated state property privatization.The government has changed the procedure for transferring property into state management under the State Property Fund for integral property complexes of enterprises, institutions, and organizations that are not included in the list of objects that are not subject to privatization or state ownership, reported at the Ministry of Economy. Now the initiative to transfer such objects will be shared by their management and the Cabinet of Ministers, the Ministry of Economy, and the State Property Fund. If the body that manages the asset does not agree to transfer proposals within the prescribed period, they will be transferred to the government without its approval. Following this, the asset will be transferred to SPF management as quickly as possible, with further preparation for an open and competitive auction.
The Zelenskiyy office has announced mass privatization of abandoned enterprises. By the end of this year, many abandoned enterprises, workshops, and premises will be identified for privatization in Ukraine. As the deputy head of the Office of President, Rostislav Shurma, explained in an interview with LB.UA, these properties are primarily of the type that will arouse the interest of entrepreneurs within the country. According to Shurma, this will provide opportunities for business development to those Ukrainians who remain in the country. The official explained that these objects do not bring profit to the state and, in fact, are incurring losses. They will be distributed at a price determined by the demand. According to the OP's representative, about 200 more state assets will be privatized in addition to the previously announced objects in the first step.
6.2 Debt
Ukraine signed an agreement to suspend foreign debt payments on September 14. Minister of Finance Serhii Marchenko signed a memorandum on the suspension of payments for state and state-guaranteed debt with a group of Ukraine’s official creditors from the G7 and Paris Club countries.
The agreement was concluded as a continuation of the intention announced on July 20 by the creditors to suspend principal and interest payments on bilateral debts from August 1, 2022, to the end of 2023, with the possibility of extending the suspension for an additional year.
Creditor countries supported the move to allow the Ukrainian government to increase social and health care spending and stabilize the economy during the war. The memorandum was signed by representatives from the governments of Canada, France, Germany, Japan, Great Britain, and the US. The total amount of debt covered by the memorandum is approximately $3.1B.
40 UKRAINE Country Report October 2022 www.intellinews.com