• The adjustment of domestic energy tariffs in the wake of the gas import price increase of 2006 and 2007, allowing deficits in the energy sector to be reduced. • The enactment and implementation of a law on restructuring of debts in the energy sector, leading to improved financial conditions in power generation and distribution companies. • Continued fiscal discipline as reflected in a low budget deficit. • The adoption of a new legal framework improving the governance of state-owned enterprises. • The implementation of the first standardized test in secondary education, providing an independent assessment of educational achievements and thus creating the basis for improvements in the quality of education in Ukraine.
The DPL II further outlines a set of reform priorities to support Ukraine's vision of economic development on the basis of convergence to European standards. Among the most important milestones along this path in the coming year, the DPL II highlights the following: • Enactment of a new Law on Joint Stock Companies; • Enactment of a new legislative framework on public procurement; • The establishment of an independent regulator in the energy sector, through enactment of the law on the National Energy • Regulatory Commission; • The continued adjustment of domestic energy tariffs in response to the rising cost of imported energy, and the maintenance of high collection rates; • Continued fiscal discipline, as reflected in a fiscal deficit below 3% of GDP; • The passage of a law unifying the contributions into the four different social insurance funds into one payment, thereby lowering the cost of compliance for enterprises and improving the efficiency of the social insurance system.
“As a new Government takes office in Ukraine, it will face the challenge to rapidly re-launch the reform effort and make up for time lost due to the protracted period of political uncertainty,” says Martin Raiser, Economic Advisor in the Ukraine office of the World Bank and Task Team Leader for the DPL II. “The DPL II lays out a prioritized and realistic program of policy action that would signal to the population and to the investor community that Ukraine is committed to further economic reform.”
Through the Development Policy Loan program, the World Bank hopes to contribute to making Ukraine's economic growth more sustainable and more equitable going forward. The policy measures are elaborated and prioritized in close consultation with the Government of Ukraine but also benefit from the input of civil society and other development partners.
Since Ukraine joined the World Bank in 1992, commitments to the country total around US$ 5.2 billion for 37 operations.
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