The IMF expects Ukraine to 2017 pension and land reform

To continue cooperation with the International monetary Fund, Ukraine needs to raise the retirement age, reduce the number of civil servants and state employees, to cancel the «simplified taxation» and to open the land market. This is stated in the latest version of the Memorandum on cooperation of Ukraine with the IMF.

The draft Memorandum consists of 12 structural lighthouses, seven of them new.

As noted, firstly, the Cabinet has until the end of January 2017 to decide on the monetization of subsidies.

Second, pension reform. A new period — the end of March 2017. The current draft of the Memorandum provided for the adoption of the law on pension reform until the end of December last year. This did not happen, so the IMF tightened requirements.

Lighthouse provides for a gradual increase in the retirement age: for men, for four months every year, starting from July 2017, for women — for six months after 2021, as long as both the retirement age will reach 63 years in 2027.

Provides for increasing the working time to 25 years from January 2017 with the introduction of minimum insurance experience at 16 years. Now the required work experience is 15 years with a gradual increase per year until, until it reaches 35 years old in 2036.

Thirdly, land reform. The new deadline is the end of March 2017. Submit the law on land market to Parliament the government undertook by the end of September last year, but not filed. Now the lighthouse was discharged again, but harder — until the end of March the law should be adopted.

Fourth, we have to choose international company with a good business reputation to audit PrivatBank. Deadline: end of January 2017. Auditors should identify whether the violations in the preparation of the financial statements for the six months preceding nationalization.

Fifth, it is necessary to choose international auditor for evaluation of the implementation of shareholders of PrivatBank terms of restructuring. Deadline: end of June 2017. The company must assess whether the terms of the restructuring to offset losses on loans issued to related parties.

Sixthly, the creation of a unified register of recipients of social payments until the end of June 2017. The idea of creating a registry is not new. Its appearance is necessary, including to continue the verification process social payments. While further conversations and targeted initiatives dealing with space not moved.

Seventh, the establishment of a legislative framework for anti-corruption courts. Deadline: end of June 2017.

By results of work in Kiev in the period from 13 to 17 November 2016 the mission of the Foundation made a statement on granting Ukraine additional time to complete the current phase of the EFF. «Despite the success, the authorities need additional time to implement policies to ensure medium-term fiscal sustainability, including the adoption of the budget for 2017 in accordance with the target indicators of the program, ensuring financial stability, and fighting corruption. Discussions in these areas will continue further», — stated in the mission statement.

In addition, the IMF expects the Ukrainian authorities to be more proactive in the fight against corruption, in particular, the prosecution of senior corrupt officials.

The head of the Ukrainian Ministry of Finance Alexander Danilyuk claims that urgent need for money from the IMF anymore. According to him, this assistance is no longer critical. «All is lost» will not» — he comments.

As reported, the mission of the International monetary Fund (IMF) in the coming weeks to recommend to the Board of Directors of the Fund to conduct the third review of the EFF. On 12 January reported by the official representative of the Fund Jerry rice.

«I have her yet (the exact date of the meeting of the Board of Directors), but we expect it will be soon, in the coming weeks. Assuming that all the outstanding issues (requirements are met by the Ukrainian authorities) will soon be resolved, offer to complete the next revision of the program can be presented to the IMF Board in the coming weeks,» he said during the traditional press-briefing in Washington.

Raising the retirement age for Ukrainians in the framework of the reform aimed at reducing Pension Fund deficits, should start with the so-called «soft» categories. This opinion in October in Washington was expressed by the Director of the European Department at the IMF’s Paul Thomsen.

The IMF expects Ukraine to 2017 pension and land reform 16.01.2017

Январь 16th, 2017 by
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