During the plenary session of the Kyiv City Council on November 6, the head of the permanent commission on budget, socio-economic development, and investment activities, Andriy Vitrenko, raised the issue of reforming the capital’s municipal enterprises and their transformation into joint-stock companies.
This is reported by Kyiv24
Key Changes in Legislation and the State of Municipal Enterprises
One of the main innovations of the current legislation is the gradual replacement of the organizational and legal form of state enterprises. There are over a thousand municipal enterprises operating in Kyiv, most of which are considered inefficient and receive significant budget funds for their maintenance. A substantial portion of these enterprises remains unprofitable, creating additional financial burdens on the city budget.
Extended Reform Period
At the meeting, the director of the Department of Municipal Property of the Kyiv City State Administration, Andriy Hudz, reported that the transformation and liquidation of municipal enterprises in the capital will last for another three years. This means that during this time, unprofitable enterprises will continue to receive funding from the city budget.
Today, in response to a question from Andriy Vitrenko, the director of the Department of Municipal Property of the Kyiv City State Administration, Andriy Hudz, explained that the process of liquidating municipal enterprises and reforming them in Kyiv will take three years.
Thus, the residents of Kyiv will not soon feel the positive results of the reform, and the city budget will continue to be forced to support unprofitable municipal enterprises.