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Investor Presentaiton

Public governance Key areas Challenging reforms start bearing fruit (1/2) Parliament: pro-Western parties with majority of mandates ▷ Decentralization: transfer of budgetary powers to local self-government bodies ▷ Anti-corruption: full anti-corruption infrastructure in place 2019-2020 update ⚫ New Supervisory Boards in state- owned banks commenced their work (Jun and Dec 2019) • Law on criminalization of illicit enrichment adopted (Oct 2019) • High Anti-Corruption Court (HACC) commenced its operations (Sep 2019) Selected results 90% increase in revenues of local budgets in 2019 vs 2015 50 directorates with 1,305 new reform staff positions in civil service 892 criminal proceedings by the NABU with 245 cases filed to the courts Public finance Taxation: decrease in number of taxes and reduction in tax rates Debt management: MTDS, return to markets, significant involvement of international investors and effective investor relations, DMO approval Medium-Term Budget Planning introduced Public expenditures and procurement: electronic procurement system fully effective • US$ 5.0bn Staff Level Agreement with the IMF (May 2020) • Financial Sector Development Strategy 2025 adopted (Jan 2020) Split and relaunched Fiscal and Customs Services (Sep, Dec 2019) ⚫ Link between Clearstream and NBU depository launched (May 2019) 18-fold increase in non- residents' domestic government bond portfolio to US$ 4.9bn over 2019 50% of 2019 GDP - state and state-guaranteed debt (vs 81% in 2016) 11 number of taxes (vs 22) Business climate ▸ Foreign trade: DCFTA in full force, FTA with Israel signed in early 2019, FTA with Turkey under negotiation ▷ Competitiveness and Deregulation: a great leap forward in international rankings ▸ Investment climate: introduction of effective mechanisms for dealing with bankruptcy • Law on agricultural land sale adopted (Mar 2020) • Law on concession signed by the President (Oct 2019) • Restrictions on privatization of a list of SOEs canceled (Oct 2019) ⚫ SME Development Office launched (July 2019) Ease of Doing Business ranking improvement to 64th in 2020 report, 48 places up from 2014 USD 2.4bn FDI to Ukraine's real sector in 2019 530 SOES were handed over to the State Property Fund for privatization in 2019 BA Sources CMU, Ministry of Finance, NBU, NABU July 2020 37
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