Volodymyr Groysman: Changes in legislation regarding increase of income sources for local communities will improve their capacity to cooperate with the EBRD

Improvement of financial viability of local communities, which is expected after adoption by the Verkhovna Rada of a number of legislative changes proposed by the Ukrainian Government, will open new opportunities for cooperation with international financial organizations.

The Vice Prime Minister of Ukraine, Minister of Regional Development, Construction, Housing and Utilities Volodymyr Groysman announced during a meeting on Thursday, September 11, with First Vice President of the European Bank for Reconstruction and Development (EBRD) Philip Bennett.

"Improving of financial viability of local communities is one of the main objectives of the local self-government reform, carried out by Ukraine. The Government offers to legislate transfer to the communities the following sources of incomes: in particular, a part of the individual income tax, to introduce a property tax, we didn’t practice before. We are to lay the basis for certain mechanisms to enable the communities to return borrowings from international financial organizations", - said Volodymyr Groysman.

He stressed that at the local level investments are need in practically all areas of life - urban transport, roads, energy area, household waste, water supplies, etc.

Volodymyr Groysman and the EBRD representatives discussed sectors for further cooperation, namely, the prospects of restoration of Donbas, infrastructure projects in Ukraine, as well as energy efficiency projects.

Philip Bennett noted the willingness of the Bank to work in all the mentioned segments, in particular regarding energy independence projects.

"The projects on energy independence make up 40% of total EBRD projects around the world, in Ukraine these projects are represent only at 19%, we have what to do," said the First Vice President of the EBRD.

According to him, the report on the investment needs of Ukraine will be present by him at a meeting of the Board of Governors of the EBRD, which is due the following week.