IMF opposes creation of single holding of state companies in Ukraine

The International Monetary Fund (IMF) has discouraged Ukraine from creating a state holding, which would unite all state enterprises.

Source: IMF documents from the second review of the program within the framework of the Extended Fund Facility (EFF) published by the IMF

The IMF considers this decision to be premature.

Quote: “Creating a holding company (…) at this stage is premature due to financial and potential management risks. Instead, the Fund considers it reasonable to study the options of strengthening the management of state enterprises using the existing reforming program for corporate management of state enterprises.”

The IMF referenced the advanced experience which provides for the necessity to firmly determine the scope and mandate of the management of state enterprises, including the roles and mandates of key state institutions and consultations with the international partners.

Moreover, the IMF insists that Ukraine must adhere to a clear state enterprises reforming programme, taking into account the adoption of the law about corporate management of state enterprises No.5593-d, corresponding secondary legislation, etc.

The IMF also stated that a valid legal basis for virtual assets can pose risks for price stability and monetary policy efficiency.

Background: The idea of creating the united state holding was proposed by Ukraine’s Defence Minister Rustem Umierov who used to be in charge of the State Property Fund. This idea was also supported by the Ministry of Economy and Rostyslav Shurma, Deputy Head of the Office of the President of Ukraine.

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