Open source
The Ministry of Finance has prohibited the cities from placing temporarily free assets of the general fund on deposit accounts, Economic Truth reports.
The ban concerns the general fund of local budgets and is valid until December 31, 2019.
“Funds that are credited to the general fund of local budgets do not work for residents of local communities (support, activities, provision of better services). Instead, they accumulated and diverted for a long time of the budget process,” the Finance Ministry said.
The ban on the ministry sparked harsh criticism from local government officials.
“From now on, local authorities will not be able to accumulate funds for the implementation of large infrastructure projects. First of all, state banks, in which cities kept their deposits, will suffer” said Oleksandr Slobozhan, executive director of the Association of Cities of Ukraine.
According to him, this ban may cause massive lawsuits, because the cities have signed agreements with banks.
As The Journalist reported, Ukraine hit the 53rd place in the Bloomberg innovation rating.
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