On Monday, 20th of December, 2016, the nationalization of PrivatBank was announced. The representatives of the government and the central bank explained the decision with the bad quality of the credit portfolio, large number of loans to affiliated companies and undercapitalization of the bank. The bank’s former management presented their view of the events, pointing to the unjust actions by the NBU that were selectively aimed at the largest Ukrainian bank. Full text is available in Ukrainian.
Monthly Archive: December 2016
What was that year about? Have there been any real economic breakthroughs? Has anything important happened that will define the country’s development? We have sought answers by looking at more than 220 analytical articles that were published at VoxUkraine in 2016. The findings suffice to construct an alphabet. Here are the most important events of 2016 that illustrate the changes that have (or have not) happened in Ukraine. Full text is available in Ukrainian.
How much will those who are paid the minimum wage actually earn? What will the influence of the tariff grade be? This VoxCheck is dedicated to the myths about the minimum wage in Ukraine. Full text is available in Ukrainian and Russian.
Within the last two years, the president signed the Association Agreement with the EU, considerably increased funding of the military and almost introducing a visa-free regime. However, other changes promised by Poroshenko have just been started.
Do Ukrainian judges live exclusively on their salary? Is it possible to uncover a probably corrupt judge by only analysing their income declaration? Full text is available in Ukrainian and Russian.
Ukraine’s improving economic situation creates a feeling of no urgency in further IMF financing. This view is not justified if one looks at the three-year horizon. Ukraine faces $14bn of external debt payments over the next three years, with half of them in 2019 – a year of presidential and parliamentary elections. Foreign currency reserves that the country has accumulated have to be built up further, rather than spent. Otherwise, Ukraine’s economy may appear on the brink of another economic crisis right before the election year, which may have a dramatic effect on the country’s development trajectory post-2019.
How efficient has the government of Volodymyr Hroysman been? Have the ministries had more work and have they managed to do it well? We sought to answer these questions by analysing the implementation of the government’s program. It turns out that the Ministry of Sport is the best in keeping its promises, yet its goals and tasks are far from ambitious. The Ministry of Internal Affairs, as well as the Ministry of Finance, are also among the leaders. Yet even the leaders failed to meet more than 25% of their targets. Another problem is the uneven distribution of tasks between the ministries, as the Ministry of Economy is responsible for almost a third of the tasks. The government is becoming less transparent as its ministries are less willing to reply to requests and share information. Full text is available in Ukrainian and Russian.
The index for monitoring reforms (iMoRe) increased slightly due to significant positive changes in the sphere of deregulation. Experts’ assessment of progress of reforms for November 21 through December 4 is +0.9 points, out of a possible +5 points. The main driver of this increase was reform in business environment, and some changes that occurred in public finance and the monetary sphere.
The widespread media coverage of conflicts around agricultural land does not match the actual statistics of court disputes. Their share in the total number of litigations in Ukraine is 3%, which is ten times as little as the number of contract disputes and 7.5 times as little as the number of family disputes. Most of the disputes concern non-agricultural land. Yet the implementation of the agricultural land market (and hence the rise of the value of agricultural land) can have an impact on the frequency of land court disputes. Full text is available in Ukrainian and Russian.
Recently, the Verkhovna Rada adopted two new laws regarding industrial parks (№2554а-d, №2555а-d). These new pieces of legislation provide tax and customs incentives for the industrial enterprises that occupy Ukraine’s industrial parks. Is this a good or bad development? What insights can economic theory and international experience provide?