Chart 1. Value of IMoRe and its components over current and previous rounds
The IMoRe value over the second monitoring period (January 12-25, 2015) stood at +1.3 points out of maximum possible range of -5.0 to +5.0. IMoRe rose slightly from +1.1 points in the previous round, but remained below 2-3 points, which we consider to be an acceptable pace of reforms.
An event that received the highest grade from experts (+3.5) was the decision to liquidate executive and registration services by the Ministry of Justice (MJ). The experts considered liquidation to be positive development, because named entities had overlapping competences, but pointed that further streamlining of respective procedures is necessary. Another important event was decision of the Cabinet of Ministers to eliminate 15% discount at oil auctions, which according to our experts opinion liquidates one of corruption schemes and contributes to creation of level-playing field. The event received +3.0 points. Thanks to these two decisions as well as to cancelation of export licenses on a number of goods the overall progress in Governance and anti-corruption direction was estimated at +1.75 points.
Experts noted that the above-mentioned liquidation of two government bodies by MJ will lead to reduction of budget expenses. Besides, moderately positive assessment was given to the law on tax compromise, as certain group of taxpayers was expecting this law in order to settle their tensions with tax administration. But experts suggested that one should not expect much de-shadowing due to this law. Overall progress of the Public Finance direction is estimated at +1.5 points.
A grade of +1.0 point was given in Monetary Policy and Financial Markets direction, thanks to two NBU resolution conducive to quicker rehabilitation of the baking system through easier merger of problematic banks and increased responsibility of investors during banks rehabilitation. Same number of points (+1.0) were given to International trade direction – for cancelling of some export licenses – and to Energy independence direction – for already mentioned change in the oil auctions procedure and somewhat loosening the rules for usage of special accounts by heating companies.
Chart 2. Average value of Index components since beginning of monitoring (January 1, 2015 to January 25, 2015)
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