Implementation of the IFIs' requirements looks like it’s on summer vacation

Last week wasn't very successful regarding the obligations under the Memorandum with the IMF. Only few steps were taken to get closer to fulfilling a couple of promises, but not structural benchmarks. But there was a progress under the World Bank cooperation requirements.

Prepared a new digest which covers a progress in Ukraine cooperation with main IFIs between 31 July and 06 August. Parliamentary Committee on Finance, Tax and Customs Policy has begun to strengthen regulatory effectiveness for non-banking financial institutions (NBFIs). The Committee recommended in first reading the DL #9422 which excludes NBU regulations for NBFIs from the scope of Law of Ukraine "On principles of state regulatory policy in the field of economic activity". This step is the obligation stated on paragraph 53 of the updated Memorandum. 

Regarding the obligations to expand corporate governance in SOEs, database of SOEs may be developed in Ukraine. According to the CMU official website, the Prime Minister gave instructions to the Ministry of Economy, the SPFU and the Ministry of Digital Transformation to create a single database of Ukrainian SOEs and their legal owners.  According to the Ministry of Economy, the state currently manages over 3,000 enterprises, just 109 of which are strategic and won't be subject to privatization. The Prime Minister confirmed the commitment to introduce corporate governance reform for these SOEs.

Ukraine actively prepares for reconstruction.

In December 2022, the World Bank recommended using the Prozorro system for all procurement for reconstruction needs and provided recommendations for adapting the system to the World Bank rules.  Last week Prozorro develops procurement procedure for reconstruction needs in line with donor's requirements. The new procedure will enable to set customized rules for every procurement according to the requirements of any donor. New features will be available not only for the World Bank, but for any other international organization.

To be transparent not only economically, but also politically, the Parliament can restore financial reports of political parties. On 04 August the Parliamentary Committee on Legal Policy recommended to adopt in the first reading the DL #9419-1which restores the obligation of political parties to submit financial reports on their assets, incomes and spendings as well as the obligation of the National Agency on Corruption Prevention (hereafter - NACP) to check these reports in 60 days. 

The DL was submitted by almost all factions and parliamentary groups as the alternative to the CMU text and was supported by the NACP.

The DL is going to be considered by the Parliament this week.