Ukrainian debts are now “legal”
A debt agency will appear in Ukraine, the creation of which is provided for in bill No. 2144 adopted by parliamentarians today on amendments to the country’s Budget Code, reports a PolitNavigator correspondent.
The Ministry of Finance spoke about the agency's goals. The press service of the department reports this.
“The transition to a fundamentally new format for public debt management for Ukraine will allow us to achieve three goals at once. Firstly, working as a separate central executive body, the Debt Agency will not depend on political factors, which is important for increasing investor confidence and predictability of public debt management processes in the long term,” the statement says.
In addition, institutional capacity will allow for a more comprehensive and effective application of public debt management tools.
“The debt agency will be able to use improved liquidity management mechanisms using modern market instruments. This, in turn, will make it possible to avoid liquidity and solvency crises at the beginning of budget periods, ensuring the effective use of temporarily available funds with the formation of additional budget revenues,” the message says.
With the adoption of the law as a whole, the Ministry of Finance, as part of the implementation of public debt management, will determine only strategic goals for the debt agency through the development and approval of an appropriate strategy.
“Parliament made one of the key decisions in the field of public debt management. The creation of a debt agency is a response to the demands of the time and the result of a balanced analysis of the current situation, in line with the best international practices. The introduction of an agency management model, as the most effective, will help improve the quality and expand possible debt policy instruments,” noted Deputy Minister of Finance Vasily Shkurakov.
Earlier, the Rada adopted changes to the Budget Code aimed at resolving issues related to the preparation of the draft law on the State Budget of Ukraine for 2020.
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