Development of the investment funds ecosystem is one of the priorities of the Government Action Plan for 2021-2023, - Olga Magaletska

On January 22, 2021, the Head of the Office of the National Investment Council Olga Magaletska joined the discussion of the draft National Economic Strategy - 2030 chaired by the Prime Minister of Ukraine Denys Shmygal.

Participants discussed proposals to improve investment attractiveness, capital market development and macroeconomic stability.

Olga Magaletska told about the importance of the functioning investment funds ecosystem and the Fund of Funds: “One of the priorities of the Government Action Plan for 2021-2023 is the development of the investment funds ecosystem. Among the initiatives that are proposed to be considered and developed are the creation of the National Investment Fund and the State Fund of Funds" said the Head of the Office.

National Investment Fund will be create for the transformation of state-owned enterprises, the stakes in which will be under its management, into effective and profitable companies: “As for the NIF, at the first stage we planned to transfer shares of 10-15 large state-owned enterprises to its management, and in the future this number can be increased. The main task of such an investment fund is to increase the efficiency of state-owned enterprises through the corporatization. In particular, the NIF will be able to appoint its representatives to the company's supervisory boards. NIF's tasks will also include regular audit of SOEs and evaluation of their assets in dynamic.”

Regarding the initiative of the State Fund of Funds, Olga Magaletska stressed that it aims to intensify the development of domestic investment funds and provide opportunities to attract funding from international partners and most importantly - to stimulate the development of promising and innovative enterprises and Ukraine's economy in general. According to the Center for Economic Recovery, the expected effect from the launch of the State Fund of Funds is 1.30% of GDP.

Olga Magaletska noted that investment in the development of enterprises and startups in Ukraine is insufficient, in particular due to the lack of state mechanisms to stimulate investment such as a fund of funds - a mechanism that is actively used by various countries. Therefore, these initiatives need to be considered and discussed.

 

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