12:27 17.09.2020

Rada rejects govt bill on granting Ukrenergo with guarantees for loans to pay debts to RES companies

1 min read
Rada rejects govt bill on granting Ukrenergo with guarantees for loans to pay debts to RES companies

The Verkhovna Rada has rejected government's bill No. 3960 amending the law on the budget for 2020 regarding the provision of government guarantees for international lending to projects in the electric power industry by the government's decision.

Rada at a meeting on Thursday did not support the bill developed by the Ministry of Finance, in favor of which 189 MPs voted. The parliament also refused to send it for the repeated first reading (204 MPs supported the proposal) and for revision to the authors (210 MPs).

According to Deputy Finance Minister Vasyl Shkurakov, who was presenting the bill, this document was developed in order to regulate the situation on the electricity market, first of all, to settle payments with producers of electricity from renewable sources.

"Today, the government is negotiating with IFIs, in particular, with the EBRD [the European Bank for Reconstruction and Development], regarding the possibility of attracting loans to replenish the working capital of key energy companies, including those with public service obligations (PSO). This will allow Ukrenergo, as well as Ukrhydroenergo and Energoatom, to raise funds to boost liquidity," the deputy minister said.

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