OREANDA-NEWS  On 05 November was announced, that Ukrainian Parliament by 243 votes adopted the law on measures aimed to minimize the impact of the global financial crisis on the Ukrainian economy. The document in the second reading was supported by the deputies representing the BYuT faction, Nasha Ukraina – Narodnaya Samooborona bloc, and Block of Litvin. After its signing by Victor Yuschenko, the law will remain effective till January 1. 2011.

The key points were: setting up of the stabilization fund, increase of the state guarantees in respect of deposits and abolishment of two-year moratorium on minimal salary increment to the cost of living level.

The source for stabilization fund formation in 2008 will be the proceeds from sale of the government securities and the above-the-expected proceeds from privatization, and in 2009 – all funds raised from the state property privatization.

The banks re-capitalization mechanism has also been changed. The preemptive right to the new shares will have the current owners, and after them – investors and the Finance Ministry.

Besides, after analyzing the draft law, the MPs excluded from it the provision related to Ukreximbank capital increase by UAH 1 bn required to buy out a stake in Prominvestbank. Thus, in case of Prominvestbank nationalization, it will be carried out under the common scheme.

The Individuals' Deposits Guarantee Fund will be financed for account of 25% of the NBU proceeds, but it shall be not less than UAH 1bn annually. The maximum threshold for guaranteed deposits was raised from UAH 50 thousand to UAH 150 thousand.

The moratorium on minimal salary increase to the cost of living level from October 1, 2009 till the end of 2010 was not approved. Due to the above, the necessity to adopt the deficit-free budget for 2009 becomes stronger, and the government will have to find almost UAH 49 bn to finance the social spending.