MONETIZATION OF HUS SUBSIDIES

MONETIZATION OF HUS SUBSIDIES

Stakeholders:

STAGES OF PROJECT IMPLEMENTATION

STAGES OF PROJECT IMPLEMENTATION

July 2016

January 2017

January – October 2017

November 2017

February 2018

Ensuring support for monetization from key Ukrainian and international parties (IMF, EU, CMU, Ministry of Finance, Ministry of Social Affairs and Minregion)

Team contribution:
Analytics and advocacy

Comprehensive analysis of the housing and utility services system in Ukraine

Team contribution:
Analysis under the technical assistance of the International Finance Corporation

Development of a concept and roadmap for two-stage subsidy monetization

Team contribution:
Development and presentation of the analytical report within the framework of the World Bank technical assistance

Development of the CMU Resolution for the monetization of subsidies at the level of utilities and further monetization for population

Team contribution:
Significant contribution to the development of the regulatory legal act

Adoption of the CMU resolution on the provision of housing subsidies to the population in monetized form

Team contribution:
Support for the adoption of the Resolution at all stages

Subsidies for housing and utility services are financed through a complex non-transparent system of mutual settlements with many counterparties (budget, Naftogaz, service providers, other companies)

The initial state

The concept and the plan for the implementation of a two-stage monetization of subsidies was developed and supported by key Ukrainian and international stakeholders. The transitional stage allows to minimize risks and create preconditions for monetizing subsidies at the consumer level

Approach

Since the end of 2019, subsidies for housing and utility services are provided directly to the accounts of the population

Result

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