Ukraine: Technical Assistance Report-Reforming Management and Oversight of State Assets

IMF Staff Country Reports, February 8, 2016

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The paper discusses various public finance management reforms required for state-owned enterprises (SOEs), identified as a high priority of the government.
High levels of direct and indirect state support are adding to significant risks emanating from the SOE sector.
The severe economic situation is exacerbating problems in the SOE sector.
There is a need to establish proper corporate governance arrangements, improve performance management frameworks, and make SOEs accountable for poor performance.
Reinforcing financial and fiscal discipline within the SOE sector is required.
Establishing independent Boards of Directors to perform stewardship and oversight functions for public sector entities should form a cornerstone of the reform strategy.
Improving transparency and reporting to the parliament and general public is essential.

High levels of direct and indirect state support to SOEs contribute to significant sectoral risks.
The severe economic situation in Ukraine exacerbates existing fiscal and operational vulnerabilities within SOEs.

Establish proper corporate governance arrangements for SOEs.
Improve performance management frameworks to hold SOEs accountable for poor performance.
Reinforce financial and fiscal discipline across the SOE sector.
Establish independent Boards of Directors to perform stewardship and oversight functions for public sector entities.
Improve transparency and reporting to the parliament and the general public.