Photo from UNIAN
The ministry considers it expedient to unlock large-scale privatization in 2H 2019.
The Ministry of Finance of Ukraine hoped for a more substantial reduction by the National Bank of Ukraine of its key rate, Minister Oksana Markarova has stated commenting on the NBU's move to lower the rate to 17%.
"Despite the actual level of inflation, the Ministry of Finance, of course, secretly hoped for a greater reduction in the rate because the rate directly affects the cost of the placing by the ministry of domestic bonds in the national currency. But we are glad that the NBU has maintained the downward trend," Markarova wrote on Facebook.
Read alsoNBU cuts key policy rate to 17.0%
Market rates for hryvnia resources within the country depend on the key rate, Markarova said, adding that, at the same time, since year-start, the Ministry of Finance has borrowed UAH 288.5 billion, spending UAH 308.3 billion for repaying and servicing public debt, while privatization revenues amounted to only UAH 0.3 billion, with a target set at UAH 17.1 billion.
"Large-scale privatization is not only a tool for overcoming corruption in state-owned enterprises and finding an effective owner for them, but also a source of funding, which reduces the need to borrow this sum and reduces the volume of funds that needs to be serviced. Therefore, energy and measures in the second half of the year should be aimed at unblocking large-scale privatization and organizing transparent and public biddings for all assets, "added Markarova.
As UNIAN reported earlier, the National Bank resumed the monetary policy easing cycle. From July 19, the central bank lowered the key rate to 17% after keeping it 17.5% in June.
The maximum key rate at 30% was enforced in Ukraine from March 4 to August 28, 2015.
Inflation in Ukraine in June 2019 in annual terms slowed down to 9%.