The Cabinet of Ministers of Ukraine will ink framework agreements on cooperation with state-owned banks. Minister of Finance of Ukraine Serhii Marchenko, Minister of Economic Development, Trade and Agriculture of Ukraine Ihor Petrashko will be authorized to sign the corresponding agreements. The relevant decision was made at a Government meeting on August 26, 2020.
It should be stressed that for the first time in Ukraine framework agreements on cooperation between the Government and state-owned objects are being concluded.
The key purpose of framework agreements with public sector banks is to resolve issues of interaction between the Government, the Ministry of Finance of Ukraine and state-owned banks on the terms of transparency, accountability in accordance with current Ukrainian legislation and Ukraine’s obligations to international partners and creditors.
The conclusion of framework agreements is in line with Article 7 of the Law of Ukraine “On Banks and Banking Activity” and the provisions of the current Memorandum on Economic and Financial Policy with the IMF and is one of the important stages of corporate governance reform in state-owned banks.
The signing of framework cooperation agreements introduces high standards of transparency in relations between the Cabinet of Ministers of Ukraine, the Ministry of Finance of Ukraine and state-owned banks, which in turn will allow the state to act as an informed owner of state-owned banks and privatize them in the future.