Vitaliy Koval: Implementation of corporate governance reform is the key to effective public sector performance

Vitaliy Koval, Chairman of the State Property Fund of Ukraine, took part in the conference “Corporate Reform - the Way to Transparent and Effective State Property Management”, where he presented the Fund's vision of the necessary changes for effective reform of state-owned enterprises.

Vitaliy Koval emphasized the importance of transforming the corporate culture, which involves clear rules, standardization of processes and increased responsibility of supervisory board members. “The Fund manages 2,331 state-owned enterprises, and for the reform to be successful, changes must take place at all levels - from stakeholders with a strategic vision to management and members of supervisory boards of state-owned companies,” said the Chairman of the Fund.

Vitaliy Koval said that the Fund is a supporter and promoter of corporate reform and works closely with MPs, the Ministry of Economy and the Ministry of Finance to implement the necessary changes as soon as possible. He also emphasized the importance of privatizing non-strategic assets on the way to a market economy, while taking into account the social function of state-owned enterprises during the reform process.

The Chairman of the Fund also emphasized the challenges facing the public sector of the economy. These include the lack of a developed stock market and limited financing from banks. Only 5% of enterprises managed by the Fund use credit resources. However, a change in corporate culture can increase the investment attractiveness of state-owned enterprises and help attract additional funding.

The Chairman of the Fund expressed his gratitude to international partners - Expertise France, Pravo-Justice, the EBRD and the World Bank, as well as to the USAID/UKaid Project “State-Owned Enterprises (SOE)  Reform Activity in Ukraine” (SOERA)for their expertise and assistance in implementing reforms. “Despite all the challenges, we are overcoming this difficult path step by step. We have inspiration, strength and support. Corporate reform is an important step towards Ukraine's successful European future,” Vitaliy Koval summarized.