Ukraine's Cabinet to liquidate over 1,000 inefficient enterprises

The Cabinet of Ministers of Ukraine plans to liquidate over 1,000 inefficient enterprises and put up for sale hundreds of the state-owned ones. "The Cabinet plans to introduce the program in parliament this week," the nv.ua media outlet said on September 30, referring to the Government's program of actions posted on the Verkhovna Rada's website. The document provides for an increase in the return on assets (RoA) at state-run enterprises from 2.1% in 2018 to 5% in 2024, as well as a decrease in the state's share in the economy to 5%. "We will promote the development of the private sector, which is more productive and efficient than the state one. To this end, we will carry out the privatization [campaign], which will allow transferring hundreds of public sector entities to efficient owners, who will create new jobs and eliminate corruption. This will allow ministries to focus on policy making rather than property management. More than 1,000 inefficient enterprises will be liquidated. The state will no longer spend taxpayers' funds to support inefficient loss-making enterprises," reads the program. The government also plans to create the National Welfare Fund, which will take over strategic state-owned enterprises. "We will develop property policies with a clear definition of the purpose of state ownership and key performance indicators for all state-run enterprises. We'll corporatize all state-owned enterprises engaged in commercial activities by transforming them into joint-stock companies," the document said. The Cabinet also plans to attract investors to state-owned banks to reduce the state's share in the banking sector to 20%. Now it exceeds 50%.

Ukraine's Cabinet to liquidate over 1,000 inefficient enterprises

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