Ukraine became a subscriber to the International Monetary Fund's (IMF) Special Data Dissemination Standard (SDDS) in January 2003, at which time it first posted metadata on the Dissemination Standards Bulletin Board and met SDDS specifications. Although the IMF's 2003 Report on the Observance of Standards and Codes noted a number of problems in Ukraine's data dissemination standards, by the time of the IMF's 2006 Article IV Consultation (published in 2007) Ukraine's data standards had been significantly improved. According to the 2006 Article IV report Ukraine's data are, for the most part, methodologically sound, accurate, and reliable. Problems remain, however, in the reporting of balance of payment data and national accounts, where work is still needed to resolve discrepancies in data categorization and definition; and in the timeliness of reporting national accounts data and data on the analytical accounts of both the banking sector and the central bank.

General Overview

In 2003, the International Monetary Fund (IMF) issued its Report on the Observance of Standards and Codes (ROSC) assessing Ukraine's compliance with the Special Data Dissemination Standard (SDDS). At the time, Ukraine met or exceeded the standard for periodicity, and met most requirements for coverage and timeliness. The SDDS website discloses that Ukraine avails itself of the timeliness flexibility option for central government operations data and the analytical accounts of the banking sector and the central bank. It further elects to use the "special timeliness" option for its national accounts data. Finally, the website shows that Ukraine takes advantage of the periodicity flexibility option for central government accounts data. The ROSC determined that Ukraine's legal and institutional infrastructure facilitate the compilation and reporting of reliable and accurate data, and that the agencies responsible for data compilation and reporting do their work with a high degree of professionalism. Ukraine subscribed to the SDDS in January 2003, and since then has made improvements in its data compilation and reporting practices.

However, the 2003 ROSC identified a number of deficiencies in Ukraine's reporting of statistical data. Among these was Ukraine's failure to issue adequate advance release calendars or to adopt the Template on International Reserves and Foreign Currency Liquidity and the international investment position. Further, the ROSC noted that "information on internal government access to monetary data ahead of their public release and advance notice of major changes in the methodology of compilation of government finance statistics [were] not readily available to the public" (p. 4). Ukraine had not yet adopted the Government Finance Statistics Manual 2001 (GFSM 2001), but was in the process of doing so. Inadequacies in the reporting of methodological changes were also noted, as was inconsistencies in the reporting of balance of payment data, GDP volumetrics, and other macroeconomic data, all of which limited the ability to cross-check the data and otherwise reduced its utility to users.

Subsequently, however, the 2006 IMF Article IV reported that many of these deficiencies had been successfully addressed. In particular, Ukraine has made significant progress in harmonizing the definitions and classifications employed in compiling its national accounts data with international standards. Many of Ukraine's earlier problems of reliability in GDP estimates were also addressed, but the 2006 Article IV report noted that "quarterly price indices for exports and imports are still in the development phase, and as yet not suitable for analytical purposes," (2007, p. 61) and data did not adequately reflect activity within the informal economy. Greater success is reported for data regarding the government sector, as Ukraine's procedures now follow GFSM 2001.

The IMF's 2007 report noted that reconciliation issues in the balance of payments data have been addressed to some degree, and the data now broadly conform with the IMF's Balance of Payments Manual. Cross-checking of data has been enhanced through increased cooperation across governmental agencies, but the report cited continuing problems with the coordination of the work done by the National Bank of Ukraine, the State Statistics Committee of Ukraine, and the Ministry of Finance, adding that this was particularly evident with regard to short-term external debt. On the other hand, the dissemination of international reserves and external data now comports with IMF standards. It remains for Ukraine to adopt a more thorough set of classifications for external assets statistics, within which too many items remain unidentified.

The legal underpinnings for the collection of all statistics are provided in the Law of Ukraine on State Statistics, which accords to the State Statistics Committee of Ukraine (SSCU) the responsibility of compiling data on the real and socio-demographic sectors and data on merchandise trade. The Ministry of Finance is allocated the responsibility for compiling fiscal sector data, according to the terms of the Budget Code and the Decree of President of Ukraine of September 26, 1999. The Law of Ukraine on the National Bank of Ukraine confers on that body the responsibility for compiling and reporting financial and external sector data (excluding merchandise trade). According to the IMF SDDS website, data regarding the stock market is compiled and reported by First Securities Trading System Association, an independent self-regulatory organization that is independent of the government which is government by legislation. Data confidentiality is specifically protected by the Law of Ukraine on Information and the Law of Ukraine on State Statistics, where applicable.

The Principles

Comprehensive economic and financial data, disseminated on a timely basis.

CP

According to the IMF's SDDS website, Ukraine meets or exceeds requirements regarding coverage, timeliness, and periodicity of all data, with the exception of data on external debt. Ukraine does take the "special timeliness" flexibility option for national accounts data and the timeliness flexibility option for the analytical data of both the banking sector and the central bank, as well as the periodicity option for the central bank's analytical accounts data.

Ready and equal access to official statistics.

FC

The IMF SDDS Dissemination Standards Bulleting Board (DSBB) shows that Ukraine issues advance release calendars for the real, fiscal, and socio-demographic sectors, as well as for merchandise trade, which are provided on the State Statistics Committee of Ukraine website. Advance release calendars for all other data, except for interest rates, the share-price index, and exchange rates (which are reported daily by their appropriate venues) are available on the website of the National Bank of Ukraine (NBU). Simultaneous release of data is the rule but, in some cases, access is limited to registered users or must be specifically requested.

Although the IMF's 2003 ROSC initially reported that Ukraine's advance release calendars as posted on the SDDS website did not meet SDDS requirements, reference to the website shows that this shortcoming has since largely been addressed. It is the case that there are alternative sources for such information, in a variety of media and that, where appropriate, the posting identifies contact persons in the relevant agencies.

Official statistics must have the confidence of their users. Transparency of its practices and procedures is a key factor.

CP

According to the IMF's SDDS website, the Law of Ukraine on State Statistics governs the reporting of all statistics that are compiled by the SSCU, and guarantees that agency's independence regarding methodology and data source selection, as well as the right to determine the content and formatting of its publications. Data sources are obligated by this law to cooperate fully with the SSCU in its data collection. Articles 14 and 21 of this law provide complete guarantee of confidentiality. Fiscal sector data, which is collected under the authority of the Ministry of Finance (MoF) is governed by the provisions of the Budget Code and presidential decree (1999), however the terms regarding confidentiality for these data categories are not clearly stated on the SDDS website. The data compiled by the National Bank of Ukraine (financial and external sector data, excluding merchandise trade) is governed by the Law of Ukraine on the National Bank of Ukraine. Confidentiality of this data is guaranteed not only by the Law of Ukraine on State Statistics, but also by the Law on the National Bank of Ukraine and the Law of Ukraine on Information. Stock market data is reported by the First Securities Trading System Association, a professional self-regulatory organization that is subject to Ukrainian law as well as its own internal regulatory documents.

According to the IMF SDDS website, government officials do not have access to data prior to official publication, and ministerial comments are not included. Pre-release of employment data is made to the MoF, Ministry of Economy, Ministry of Labor and Social Policy, the Cabinet, Parliament, and the President. Methodological changes are published in advance for some data categories (national accounts, fiscal sector data, financial sector data excluding interest rates, merchandise trade, and international reserves and foreign currency liquidity). Methodological changes for other data are published simultaneous with or after implementation.

Issues of professionalism and the existence of properly qualified agency staff were addressed prior to Ukraine's SDDS subscription, according to the IMF's 2003 ROSC. The Ukraine Civil Service Code establishes a high ethical standard for staff. Concerns raised in the ROSC as to inadequate information on data revision procedures appear to have largely been addressed. Cross-checking and reconciliation of data has also been facilitated, although the SDDS website notes that some discrepancies in the national accounts data still exist.

A set of standards that deals with the coverage, periodicity and timeliness of data must also address the quality of statistics.

CP

Ukraine posts summary methodologies for all SDDS data categories on the IMF's Dissemination Standards Bulletin Board. Component detail, data reconciliation, and statistical frameworks are provided for most data categories. The 2003 IMF ROSC noted that the quality of the statistical data is enhanced by the professionalism of the responsible agencies, and the legal and institutional infrastructure further contributes thereto. Legislation has been enacted to coordinate activities across statistical agencies, foster data sharing, and secure the cooperation of providing the necessary data. According to the 2006 IMF Consultation, significant progress has been made in addressing the need for resources to bring compilation and dissemination practices up to international standards has been made. However, the SDDS website notes that there is no information provided on temporal and consistency across domains in the balance-of-payments data, and some discrepancies remain in the national account data. Further, there is no information offered regarding the dissemination of component detail, reconciliation with related data, and statistical frameworks for fiscal sector data.