The Verkhovna Rada has appointed Kirill Shevchenko the new head of the National Bank and adopted the law on legalization of gambling business in Ukraine and the state property Fund has sold at auction for 1.1 billion hryvnia capital hotel “Dnipro” – these are the main economic news this week.
This week was marked by important for the economy development. The Verkhovna Rada supported the proposal of President Vladimir Zelensky and appointed a new head of the National Bank Kirill Shevchenko, who was in charge of the state “Ukrgasbank”.
It will be recalled that in early July the post scandal left Yakov Smoliy, who identified the cause of the resignation “political pressure”. He not only blew off the “historic” deal on the placement by the Ministry of Finance of Eurobonds for $ 1.7 billion, but also tossed a headache to the country’s leadership.
As is known, independence national Bank is a key requirement of the International monetary Fund and other creditors of Ukraine to the authorities of our country.
The IMF has made clear that, in principle, it is not particularly interested in the name of the new head of the NBU, the main thing – to continue his predecessor’s policy. Without this, the country can hardly count on the next tranche under a new cooperation program with the Fund.
Speech Shevchenko in front of the people’s deputies only added to the uncertainty issue of the work of the Central Bank in the near future.
“I support the policy of the NBU, aimed at ensuring macro-financial stability of the banking system. To achieve macro-financial stability and sustainable development tool of inflation targeting has shown its efficiency… But in the current environment, this tool should fit not only the macro-financial stability, but also to create conditions for further economic growth of the country,” he said from the rostrum in the session hall of the Rada.
According to Shevchenko, during his leadership of the NBU will continue to implement measures to strengthen the financial stability of banks, in particular, activates with the share of problem loans in the banking system, which today is 48 percent.
While it remains to be seen what actions will follow from the main regulator of the domestic banking sector. We need only add that the last few months Yakov Smoliy constantly warned politicians from the idea “to include the printing press” that could lead to economic disaster.
Meanwhile, MPs are seriously discussing an additional issue in the amount of about 300 billion hryvnia, which should theoretically help the economy begin to climb out of the pit koreacasino.
It is quite possible that this pressure had in mind decided to slam the door in resin. If the new head of the NBU will be more “flexible”, then in autumn, the country risks being alone with the raging economic crisis.
Another important event this week was the decision of Parliament on the legalization of gambling business in Ukraine. Thereby deputies have completed the law-making epic which lasted more than six months.
At the end of December 2019, the government prohibited the operation of gambling under the guise of the state lottery, and the Minister of internal Affairs Arsen Avakov demanded from the National police to stop the operation of gambling establishments. To bring order in the industry, the deputies have developed a bill on legalization of gambling, which was approved in the first reading back in January, but the point in this question put just now.
The adopted law clearly defined list of activities in the field of gambling allowed in Ukraine. The organization and conduct of gambling in gambling establishments, casino, betting activities, issuing and holding lotteries, gambling poker. All these operations also can be carried out on the Internet.
With regard to the physical location of the casino, the law under these facilities took exclusively the territory of hotels of category five stars in Kiev. At the same time in other localities to place casino allowed in buildings where are located the hotels of category “five stars”.
The law limits up to 40 thousand the number of slot machines in the country. The right to place “armed bandits” will play on electronic auctions with reference to their respective areas. Slot machine halls can be placed only in hotels of category “three, four and five” stars. Also, the MPs increased the “age” of the players – now they must be 18 years of age and at least 21 years old.
To regulate the industry will be the special body – the Commission for the promotion and regulation of gambling, which will report to the government.
Also introduced system of online monitoring to control the activities of organisers of games of chance by obtaining data from gaming equipment that is connected to a single system.
The MPs hope the law will bring additional revenues to the state budget that will be financed medicine, sports and culture. Will it be implemented in practice – will show time.
From the hotel to the casino
It is noteworthy that the next day after the legalization of gambling business in Ukraine held an online auction for the sale of the hotel “Dnipro” is located in the heart of Kiev. Most likely, the new owner will convert it to a casino, because during the current crisis, we can hardly expect a large influx of foreign tourists in Ukraine.
In the course of trading, which involved nearly three dozen contenders, price on Metropolitan hotel with 81 million soared to 1.11 billion.
Such an outcome of the auction clearly liked President Vladimir Zelensky, according to which the final price of the hotel “exceeded all expectations”. He also reminded that the object belonged to the State administration, and in October last year, the President signed a decree, by which the first five objects HOOD was transferred to the state property Fund for privatization. Zelensky also expects that in the near future will successfully be privatized and other objects owned by the state Administration Affairs.
“I also hope to start the privatization of large industrial enterprises, which will eliminate corruption in the public sector, reduce the budget deficit and will become one more brick in building a successful and prosperous Ukraine”, – he added.
The head of the state property Fund Dmytro Sennichenko said that such an auction is a great proof that in Ukraine it is possible to carry out an effective privatization and to get the fair price of an object. For this you need only to adhere to transparent rules and to disclose all information to potential investors.
In this story yet is of concern to the winner and the origin of the money that bought the hotel. Auction was won by little-known OOO “Smartland” from Brovary with a statutory Fund of UAH 11.3 million. It is possible that this company is not the real purchaser of the property, and acts only as a “strip”. But then the question arises – who are the real purchaser of the hotel “Dnipro”, which is ready to pay for the object more than 40 million dollars?
Well, the Fund of state property will be exactly a month, to dispel doubts or to cancel the auction.
Another important event this week on the economy was the appointment of Olga Pisansky the head of the Antimonopoly Committee. She has promised to relentlessly fight against abuses of the existing monopolies and cartels, remove entry barriers to markets, to stop anticompetitive actions of bodies of power and reform in public procurement.
This personnel story is not over. This week Yuri Vitrenko left the position of Executive Director of “Naftogaz of Ukraine”. This event was expected, as in may Vitrenko stated that he received notification of his dismissal from the company in two months, after which criticized the work of the head of Board of NJSC Andriy KOBOLEV.
Next week, MPs are planning to continue their work, but in extraordinary meetings, and state statistics will publish data on the volume of domestic industrial production and the outcome of the transport for the first six months of the current year.
The Verkhovna Rada