IMF notes positives in business, banking (04/16/00)

IMF notes positives in business, banking

Eastern Economist

KYIV - The International Monetary Fund mission noted positive developments in the deregulation of small businesses in Ukraine, First Vice Premier Yuriy Yekhanurov said after his meeting with Gullian Berengaut, head of the IMF mission in Ukraine.

Mr. Yekhanurov stated that revenues from privatization are already at 400 million hrv and, after the transfer of 500 million hrv for a 30 percent stake in the Mykolaiv Alumina Plant, the plan for privatization revenue for the first half of the year will be fulfilled.

He added that formation of the Verkhovna Rada majority and approval of the Cabinet's action program "offers hope that the 34 draft laws, which will ensure Ukraine's economic success, have better prospects than a week ago." One of the first draft laws in the queue is the state privatization program for 2000; others are the draft law on UkrTelekom's privatization and reducing the list of blue-chip enterprises that will not fall under privatization.

Mr. Yekhanurov added that the issue of limitations on the export of agricultural products also is important. In the next two weeks the Cabinet will attempt to convince the Parliament of the need to eliminate the exports fees, said Mr. Yekhanurov. At the same time, the Cabinet will work on compromises with the IMF, to fulfill the fund's conditions for ending several export fees.

Messrs. Yekhanurov and Berengaut also discussed banking sector reform, including issues concerning the activity of the Ukraina bank and the corporatization of UkrExImBank. Mr. Yekhanurov added that the government has already prepared a draft law on the corporatization of UkrExImBank, which was welcomed by the IMF mission.

Other issues that were discussed included reform of the energy sector, particularly the privatization of OblEnergo regional energy distributing companies.

During the visit the IMF mission will work in two directions: analysis of progress in implemening of conditions necessary for continuation of loans; and analysis of the results of the first stage of the National Bank of Ukraine audit.

"It is still early to state the terms of the restoration of the EFF (extended fund facility) credit program," said Mr. Berengaut after his meeting with Prime Minister Viktor Yuschenko. He added that the mission is holding talks with the government to determine the stage of fulfillment of IMF conditions. Currently, the mission possesses only the draft NBU audit results; it will take several weeks to complete the analysis.

| Home Page |