The Cabinet of Ministers of Ukraine, which this week injected government domestic loan bonds for UAH 20 billion into the capital of PrJSC Ukrfinzhytlo, proposes to capitalize it in this way for another UAH 30 billion next year, according to the updated draft state budget for 2022 (No. 6000), which was submitted to the Verkhovna Rada on Wednesday.
According to an explanatory note, additional capitalization will allow “to continue the implementation of financial and credit mechanisms for providing citizens with housing with the participation of the Ukrfinzhytlo company, as well as to provide an opportunity to carry out thermal modernization of buildings and premises and thus insure against further increases in energy prices.”
As reported, on November 29, the Ukrainian government issued government domestic loan bonds for UAH 20 billion to pay for an additional issue of shares of PrJSC Ukrfinzhytlo.
The government made a decision on additional capitalization of the company on September 22 this year. The resolution provided for the issue of government bonds with a maturity of up to 15 years and an interest rate of up to 13% per annum.
Thanks to government bonds, the company should direct funds “for the implementation of programs for providing citizens with housing on the terms of mortgage lending and financial leasing.” According to the Ministry of Finance, this will make it possible to issue about 8,000 mortgage loans for the purchase of about 12,000 apartments on a financial lease basis.
The Ukrainian League of Industrialists and Entrepreneurs (ULIE) is concerned about the latest decision of the Supervisory Board of JSC Ukrzaliznytsia to cancel the establishment of the UZ-Cargo freight branch.
According to a statement issued by the ULIE on Thursday evening, the decision in fact suspends the reform of Ukrzaliznytsia and blocks the planned capital investment in infrastructure, in particular, in the renewal of the freight car fleet.
In addition, the ULIE said that the decision of the supervisory board to stop financing the construction of new cars at the expense of the state will lead to the inability to absorb budget funds by the end of the year, which, in turn, will prolong the problem of critical wear of rolling stock and losses for export-oriented industries. This will negatively affect the national manufacturer in the field of transport engineering.
“Thus, ULIE expresses its concern about stopping the reform of Ukrzaliznytsia and calls on the Cabinet of Ministers of Ukraine as the main shareholder of the state-owned company to intervene in the situation and prevent growing confrontation between the supervisory board and the management board of Ukrzaliznytsia,” industrialists and entrepreneurs said.
In their opinion, the government should pay special attention to the support of the national interests of Ukraine in general and those already made strategic decisions regarding the development of the domestic railway, in particular, when selecting members of the Ukrzaliznytsia’s supervisory board.
“Ukrzaliznytsia’s modernization should be based on the principles of economic patriotism and understanding of the strategic importance that the company has for the transport infrastructure and the Ukrainian economy, its development in general,” the press service of ULIE said, citing President Anatoliy Kinakh as saying.
Earlier, former Business Development Director of Ukrzaliznytsia Andriy Riazantsev said that the supervisory board at its meeting on February 1, 2021 decided to cancel the decision of the Board of Ukrzaliznytsia to establish UZ-Cargo.
The Cabinet of Ministers of Ukraine expects the resumption of economic growth from the third quarter of 2020, Prime Minister Denys Shmyhal has said.
“We have macro forecasts of the Ukrainian economy from the Ministry of Economy, the IMF, the World Bank. All of these macro forecasts are converging. We expect the growth of the Ukrainian economy from the third quarter. Naturally, the second quarter failed due to quarantine,” the prime minister said during a press conference in Kyiv.
He called the economic situation complicated, however, according to him, the government does not expect surprises that will provoke a breakdown of the economy.
The group for the preparation of the first meeting of the newly elected Verkhovna Rada has voted on the agenda of the first session of the parliament for the period of consideration of organizational issues of the first session of the Verkhovna Rada of Ukraine of the ninth convocation. The first working meeting of the parliament will begin with the formation of a temporary presidium of the first session of the Rada. Then, Prime Minister of Ukraine Volodymyr Groysman will announce the resignation of powers by the Cabinet of Ministers in front of the new Verkhovna Rada.
After that, parliamentary factions and groups will be formed. Then the issue of a coalition of deputy factions (a deputy faction that has coalition rights) will be resolved.
The accounting commission of the parliament, its chairman, first deputy and deputy chairman of the Verkhovna Rada will be elected.
Next, an extraordinary message from President of Ukraine Volodymyr Zelensky on the internal and external situation in Ukraine will be heard.
MPs also intend to dismiss the head of the Security Service of Ukraine and appoint a new head of the agency, to resolve the issue of giving consent to the dismissal from office by the president of the prosecutor general of Ukraine and the appointment of a new prosecutor general.
The Cabinet of Ministers of Ukraine has approved the action plan to support software industry of Ukraine for 2018.
According to government resolution No. 344 dated May 23, the plan includes designing of software for e-health and support of the implementation of the dual education projects on the basis of universities to practice software engineering under the bachelor’s programs.
The plan envisages the promotion of the increase in cybersecurity, popularization of the introduction of protected operation systems designed in Ukraine, harmonization of international standards in the sphere of information protection and information security.
In addition, Ukraine will invite representatives of leading analytical agencies to analyze information technologies for establishing connections and analyzing the potential of development of newest information technologies.
The Cabinet of Ministers of Ukraine has provided government guarantees for loans in the amount of UAH 1.055 billion taken by state-owned enterprises Lvivvuhillia, Pervomaiskvuhillia, Selidovvuhillia, Toretskvuhillia and Surhai Mine to implement investment projects.
The resolution was approved at a government meeting on Wednesday.
According to the documents, Pervomaiskvuhillia attracts UAH 276.21 million to prepare and launch a new longwall, Selidovvuhillia – UAH 278.12 million for refitting of 11th longwall of one of its coalmines.
Surhai Mine will take a loan of UAH 138.84 million for own re-equipment and Toretskvuhillia will take UAH 21.15 million for refitting of one longwall of one of its coalmines.
Lvivvuhillia will attract UAH 112.2 million for re-equipment of Vidrodzhennia Coalmine and UAH 228.11 million for Stepova coalmine.
The government guarantee covers 80% of liabilities, including the principal of the loan and credit rates. The fee for the government guarantee is 0.001% per annum of the unpaid sum of the loan.
