Discount Rate is 13%, Sale of Shares in State-Owned Banks

NBU Keeps Discount Rate at 13%

On 19 September 2024, the Board of the National Bank of Ukraine decided to keep the discount rate at 13%.

According to the statement of the NBU, this step will contribute to the gradual return of inflation to the 5% target in the coming years and maintain stability in the foreign exchange market.

The decision to keep the discount rate at 13% in September is aimed at maintaining interest in savings in the national currency and curbing demand for foreign currency.

In addition, on 20 September 2024, the NBU cut interest rates on three-month certificates of deposit to 15.5% and refinancing loan rates to 16%, limiting their maximum maturity to 14 days.

The next meeting of the NBU Board will be held on 31 October 2024.

Law on Prohibition of the Use of Advertising in the Labeling of Medicines Enters into Force

This refers to Law No. 3910-IX “On Amendments to the Law of Ukraine ‘On Medicines’ (regarding labeling of medicines)”, which introduces amendments prohibiting the placement of advertising information on drug packages.

In general, the document provides for bringing Ukrainian legislation in line with European standards by approving new rules for labeling medicines.

We have already written more about the Law in our post by the link.

This Law shall become effective four months after its entry into force, i.e., on 18 January 2025.

Information on Separate Subdivisions of Legal Entities Transferred to the Unified State Register

In particular, pursuant to paragraph 3 of Resolution No. 1004 of the Cabinet of Ministers of Ukraine dated 03 September 2024, on 18 September 2024 the Ministry of Justice of Ukraine completed the procedure for obtaining available registration data and documents in paper form from the relevant state authorities and institutions regarding branches and representative offices of legal entities established in accordance with the laws of foreign countries, including representative offices of foreign business entities.

If it is necessary to register changes to the information about a separate subdivision or to obtain other public services by a separate subdivision, the information about which has not yet been transferred to the Unified State Register, the authorized representative of the separate subdivision should personally apply to the Ministry of Justice of Ukraine with an application (Form 11) and the relevant documents.

Verkhovna Rada Adopts Draft Law on Sale of Shares in State-Owned Banks

On 19 September 2024, the Verkhovna Rada of Ukraine adopted in the second reading Draft Law No. 11474 “On Peculiarities of Sale of Stakes Owned by the State in the Authorized Capital of Banks”, which regulates the sale of state-owned stakes in banks.

If enacted, this document will pave the way for reducing the share of state ownership in the banking sector, which is in line with Ukraine’s commitments to the International Monetary Fund and part of its cooperation with other international financial institutions.

The Ministry of Finance reported that the adoption of this law will facilitate the introduction of an effective system for selling shares in state-owned banks.

The amendments provide for permission to sell any state-owned stake in banks, with the exception of Oschadbank and Ukreximbank, as well as increased requirements for financial advisors involved in the process.

In addition, the Draft Law updates the rules for conducting auctions in line with international standards, allows international donors to participate in the selection of advisors and the sale process, and provides for the use of the Prozorro.Sale system for transparency of the auction.

The Law has now been submitted to the President of Ukraine for signature.

Diia.Business Service has been Updated

On 19 September 2024, Diia.Business, a service for entrepreneurs, started updating its design. The portal will have improved navigation, personalized services and an updated user account.

In particular, the new interface simplifies the search for information through such sections as Diia.Business Start, Diia.Business Development, Diia.Business Export, Diia.Business Women, Diia.Business Veterans, and Diia.Business Digital, which are focused on different needs of entrepreneurs.

The updated personal account will provide users with up-to-date information based on their requests, such as news on the topic, etc.

The automated consultations section is also expected to be modernized, with more than 100 experts providing assistance in various fields.