The Cabinet of Ministers of Ukraine has once again allowed housing and utilities companies to charge penalties to debtors and disconnect them from services. This decision was made in order to encourage timely payments and ensure the financial stability of these companies.
The decision was announced by Prime Minister Denys Shmyhal during a government meeting on Wednesday, October 13. He emphasized that this measure is necessary to prevent the accumulation of large debts and to ensure the proper functioning of the housing and utilities sector.
According to the new regulations, housing and utilities companies will be able to charge a penalty of 0.1% of the debt for each day of delay in payment. In addition, they will have the right to disconnect debtors from services if the debt exceeds the cost of two months of services.
This decision has caused mixed reactions among the public. On one hand, it is seen as a necessary step to ensure the financial stability of housing and utilities companies, which have been struggling due to the economic impact of the COVID-19 pandemic. On the other hand, it has raised concerns about the potential consequences for low-income families and vulnerable groups who may not be able to afford timely payments.
However, the government has assured that measures will be taken to protect vulnerable groups from the negative effects of this decision. Prime Minister Shmyhal stated that social protection mechanisms will be put in place to support those who are unable to pay their bills on time. This includes providing subsidies and financial assistance to those in need.
The decision to allow penalties and disconnections for debtors is not a new one. In fact, it was previously in effect until March 2020, when the government temporarily suspended these measures due to the pandemic. However, with the gradual easing of quarantine restrictions and the resumption of economic activities, the government has deemed it necessary to reinstate these measures.
The decision has also been supported by housing and utilities companies, who have been struggling to cover their expenses and maintain their services due to the large number of debtors. According to the Ministry of Regional Development, Construction and Housing and Communal Services, the total debt of the population for housing and utilities services in Ukraine currently stands at over 50 billion hryvnias (approximately $1.8 billion).
The government’s decision to allow penalties and disconnections for debtors is a necessary step to ensure the financial stability of housing and utilities companies. It is also a reminder to citizens to fulfill their obligations and pay their bills on time. The timely payment of bills is crucial for the proper functioning of the housing and utilities sector, which provides essential services to the population.
Moreover, this decision is in line with the government’s efforts to improve the business climate in Ukraine and attract foreign investment. The accumulation of large debts and the inability of housing and utilities companies to cover their expenses can have a negative impact on the country’s economy. By encouraging timely payments, the government is creating a more favorable environment for businesses and investors.
In conclusion, the Cabinet of Ministers’ decision to allow penalties and disconnections for debtors is a necessary step to ensure the financial stability of housing and utilities companies. While it may cause concerns for some, the government has assured that measures will be taken to protect vulnerable groups. This decision also aligns with the government’s efforts to improve the business climate in Ukraine. It is important for citizens to fulfill their obligations and pay their bills on time to ensure the proper functioning of the housing and utilities sector and contribute to the country’s economic growth.
