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| 14 July 1998 | 15 |
NATIONAL BANK RAISES DISCOUNT RATE BY 31 PERCENT
UKRAINE: NO INFLATION AGAIN IN JUNE
PRESIDENT KUCHMA STARTS PERSONAL PENSION ACCOUNTS FOR UKRAINIANS
PRESIDENT KUCHMA SIGNS DECREE REGULATING TAXATION AND CUSTOMS DUES DURING IMPORT OF HUMANITARIAN AID
OLEKSANDR TKACHENKO IS ELECTED PARLIAMENT SPEAKER
FOREIGN INVESTMENTS ALLOWED IN UKRAINE's NATIONAL CURRENCY
NATIONAL BANK RAISES DISCOUNT RATE BY 31 PERCENT
KYIV. As of July 7, the National Bank of Ukraine will raise its
discount rate on credits from the present 51 percent to 82 percent,
says NBU statement referring to the current situation on
monetary/credit markets.
In addition, NBU approved a mechanism for gradual exemption of state
securities purchased by commercial banks at auctions held from
November 17, 1997 through June 1, 1998 from mandatory bank reserves.
As of the second half of July, only 75 percent of banks' investments
in OVDP T-bonds could be included into mandatory reserves, with 60
percent, as of first half of August; 40 percent, as of 2nd half of
August; 30 percent, as of 1st half of September; and 10 percent, as of
2nd half of September. No funds invested during initial placements of
OVDPs could be included in mandatory reserves, as of October 1.
UKRAINE: NO INFLATION AGAIN IN JUNE
KYIV. In line with the state statistics committee report, same as in
May, in June inflation was at "0" level in Ukraine. Total for the
first 6 months is 3 percent. The highest rate of inflation was
observed in January and April, at 1.3 percent.
PRESIDENT KUCHMA STARTS PERSONAL PENSION ACCOUNTS FOR UKRAINIANS
KYIV. President Kuchma signed a decree regulating the mechanism for
collection of dues for mandatory pension insurance. According to the
decree, payments of pensions from the Pension Fund, as of September 1,
1998, are to be done via personal accounts of pensioners and
recepients of state subsidies opened in line with the National Bank of
Ukraine procedure. The new rule does not include pensioners residing
in rural areas where there are no banks. No charge has been set for
bank operations involved in the payments of pensions.
PRESIDENT KUCHMA SIGNS DECREE REGULATING TAXATION AND CUSTOMS DUES
DURING IMPORT OF HUMANITARIAN AID
KYIV. President Kuchma of Ukraine signed a decree exempting
humanitarian aid, with the exception of excisable goods, from
taxation. Customs clearance of such goods is carried out on the basis
of a decision by the state commission on coordination, shipments,
protection and distribution of humanitarian aid, following the
acknowledgment of a goods consignment as humanitarian aid.
Given the funds or merchandize or services exempt from taxation as
humanitarian aid were used for the purposes outside their original
allocation or for the purposes of obtaining profits, they are to be
considered as income and taxed in accordance with the Ukrainian
legislation. In addition to customs control, humanitarian aid goods
could be sublect to sanitary, veterinary, radiological, ecological and
other kinds of control.
OLEKSANDR TKACHENKO IS ELECTED PARLIAMENT SPEAKER
KYIV. As a result of secret vote on July 7, Oleksandr Tkachenko,
member of the faction of the Socialist and Peasants' parties and one
of the leaders of the latter, has been elected Head of the Supreme
Council of Ukraine. 232 of the 314 MPs who took part in the vote voted
for Mr. Tkachenko. 45 ballot-papers were found invalid. Overall, 363
MPs received ballot-papers for voting.
Oleksandr Tkachenko was born on March 7, 1939 in the town of Shpola,
Cherkasy oblast. He graduated from the Bila Tserkva Agricultural
Institute as an agriculturist. In 1991-1992, he worked as First Deputy
Head of the Council of Ministers of Ukraine and Minister of
Agriculture. Since December 12, 1992 he has been head of the Zemlya I
Lyudy (Land and People) association. From May 1994 until recently Mr.
Tkachenko has been First Deputy Head of the Supreme Council of Ukraine
of the 13-th convocation.
Speaking about Mr. Tkachenko's election as Ukraine's Parliament
Speaker, Vyacheslav Chornovil, the People's Rukh leader, said that
this has happened only because some members of four right-wing
factions voted for Mr. Tkachenko. In his opinion, voters must know
whose votes those were. Mr. Chornovil has expressed a supposition that
as soon as in 3 months a question may arise in the Supreme Council
about the re-election of the Head as, says the Rukh leader, while
conducting the Supreme Council sitting in the absence of Oleksandr
Moroz, the previous Parliament Speaker, Mr. Tkachenko simply was not
able to control the situation.
Oleksandr Yelyashkevych, member of the Hromada faction, said (adding
that it was his personal opinion as most members of his factions voted
for Mr. Tkachenko) that the election of this man was "a reserve
aerodrome" for the presidential staff. Mr. Yelyashkevych believes that
Oleksandr Tkachenko is convenient for the current authorities as he is
controlled by them and depends on them owing to Zemlya I Lyudy
association's activity (as of the beginning of 1998, this
association's debt to the state amounted to US$ 57.8 million for the
Government-backed foreign credits it attracted during the period it
was headed by Mr. Tkachenko - Infobank). Against the background of
such a Head of the Supreme Council, says Mr. Yelyashkevych, incumbent
President Leonid Kuchma seems to be a serious statesman worthy of
standing again in the presidential election due next year.
CONSTITUTIONAL COURT RULES THAT SUBORDINATION OF STATE PROPERTY FUND
TO PARLIAMENT IS UNCONSTITUTIONAL
KYIV. On July 7, the Constitutional Court of Ukraine considered the
President's address and found unconstitutional a norm of the new
version of the law on the privatization of state property. According
to this norm, the State Property Fund was to be subordinated to the
Supreme Council of Ukraine.
Earlier, on July 6, the President signed a Decree on the subordination
of the State Property Fund to the Cabinet of Ministers.
Three more presidential remarks on the law being unconstitutional,
however, were rejected by the Constitutional Court. Namely, according
to the President, the following norms are at odds with the
Constitution of Ukraine: those that expand the jurisdiction of this
law and include municipal property units; those that extend
Parliament's powers in determining the units that are not subject to
privatization; and those which do not make provision for the repayment
of the amount of partially made investments if agreements on
purchase/sale of state property are broken off due to investor's
failure to fulfill their terms.
FOREIGN INVESTMENTS ALLOWED IN UKRAINE's NATIONAL CURRENCY
KYIV. The President of Ukraine has issued a Decree by which he allowed
to make foreign investments in Ukraine's economy in the Ukrainian
national currency purchased at the inter-banking currency market or
received as a profit as a result of the investments made in Ukraine.
According to the Decree, regular representations of non-residents and
Ukrainian residents - financial agents that service the operations of
the non-residents that do not have regular representations in Ukraine
must submit statistics reports on foreign investments according to
established forms and terms. The order of making foreign investments
by way of purchasing state's promissory notes and their volumes are to
be determined by the Ministry of Finance and the National Bank of
Ukraine.
NORMS OF BRINGING GOODS INTO UKRAINE WITHOUT PAYING IMPORT DUTY TO BE
VALID ONLY ON RAILROAD, AIR TRANSPORT
KYIV. The Cabinet of Ministers has passed a regulation according to
which all kinds of taxes and collections provided by Ukrainian laws
will be imposed on all goods that Ukrainian citizens, foreigners or
persons without citizenship bring into the customs territory of
Ukraine. This regulation will come into force in 45 days after being
published. Until now the things or goods worth less than ECU 200 or
indivisible items worth less than ECU 300 that are brought into or
sent to the customs territory of Ukraine have not been subject to
taxation.
According to the new regulation, the above norm will remain valid only
if goods are brought into Ukraine by railroad or air transport or sent
by mail. In all other cases, however, the goods brought into Ukraine
by the citizens who are registered as entrepreneurs are subject to
import duty by preferential rates, value-added tax and excise
collections. The citizens who are not entrepreneurs will have to pay
the same taxes and collections but the import duty will be exacted by
full rate.
DEPUTY SPEAKERS ELECTED IN PACKAGE VOTING
KYIV. Following the voting in package in the Ukrainian parliament,
lawmakers elected Adam Martynuyk (Communist) as first deputy speaker
and Victor Medvedchuk (Social Democrat) as deputy speaker. Both
candidates received 270 "Aye" votes from the total of 229 which took
part in the voting. There were 23 "Nay" votes and 6 ballots were
filled in incorrectly.
Following lengthy debates, lawmakers finally agreed to vote on these
candidatures for speaker deputies in package. The election of these
candidates as speaker deputies is the main precondition for the deal
on the distribution of committee heads posts and some other vital
elements of parliament's work signed July 9 by the leaders of 6
parliamentary factions.
HEADS OF 22 PARLIAMENTARY COMMITTEES APPROVED
KYIV. By its resolution, the Ukrainian parliament approved heads of 22
parliamentary committees, with the Communists to lead 6 committees,
the People's Democrats - 5 committees, the Hromada party - 4
committees, the Rukh - 3 committees, the Socialists - 2 committees,
the Social Democrats (united) - 1 committee and the Greens - 1
committee.
The Communists will head the committees on law reform (Vasyl Sirenko),
on state building, local self-government and council activities
(Olexandr Kushnir), on economic policy, national economy management,
property and investments (Stanislav Hurenko), on foreign affairs and
links with CIS (Borys Olijnyk), on national security and defense
(Georgy Kryuchkov), on pensioners, veterans and invalids (Vitaly
Lutsenko).
The People's Democrats are to head the committees on health care,
maternity and childhood (Serhy Shevchuk), on science and education
(Volodymyr Semynozhenko), on industrial policy (Anatoly Kinakh), on
the fuel/energy complex, nuclear policy and nuclear safety (Mykhailo
Kovalko), on construction, transport and communications (Yuri Kruk).
Htromada party faction members will head the committees on the youth
policy and sports (Ivan Kyrylenko), on budget (Juiya Tymoshenko), on
legislative support, law enforcement and anti-corruption/crime
activities (Yuri Karmazyn), on parliamentary procedure, ethics and
work organization (Victor Omelych).
Rukh deputies will head the following committees: on cultural and
spiritual development (Les Tanyuk), on finance and banking (Valery
Alyoshyn), on human rights, national minorities and inter-ethnic
relations (Hennady Udovenko).
The Socialists will head the committee on the agrarian policy amd land
relations (Olexandr Moroz), and on the freedom of speech and
information (Ivan Chyzh). The Social Democrats (united) will head the
committee on social policy and labor (Yevhen Marchuk). The Green party
member will head the committee on environmental policy, land use and
liquidation of the Chornobyl nuclear disaster aftereffects (Yuri
Samoilenko).
In line with the parliamrentary resolution, a committee may consist of
from 10 to 30 members. A committee may include from 2 to 5
subcommittees. The resolution foresees the creation of two more
committees. Their titles are to be agreed at the next meeting of
faction heads.
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