The IMF has called the conditions of continuation of cooperation with Ukraine

The adoption of the government draft state budget for 2017, formulated in accordance with guidelines of the reforms approved by key creditor of Ukraine International monetary Fund, is one of the conditions for successful completion of the third revision of the overall reform program between Ukraine and the IMF, adopted in March 2015. This is stated in the statement of the IMF mission, which completed its work in Kiev.

«The mission held constructive discussions with the authorities about what needs to be done to complete the Third review of the EFF. Although the country is showing great progress, certain steps need to be done to ensure financial stability in the medium term. These include the adoption of the draft budget for 2017, the preservation of financial stability and the fight against corruption. Discussions on these issues will continue,» — said in a statement.

At the same time, the statement said that the presented point of view «is not necessarily the opinion of the Board of Directors of the IMF.»

«The measures taken by the Ukrainian authorities for last two years, led to a significant reduction in external and domestic imbalances. Inflation dropped significantly, increased the reserves of the National Bank. Economic growth is expected at 1.5% in 2016, and will accelerate to 2.5% in 2017,» reads the mission statement.

However, according to the head of the IMF mission Ron van Rudennow a priority for Ukraine should be to work on public sector reform, improving the business climate, providing real results in the fight against corruption, hampering economic recovery.

«We need to prove that the alleged increase of salaries (the minimum salary up to 3200 UAH – ed.) will correspond to productivity growth, preserve competitiveness in the market — quoted Rudena the press office of the IMF. — Further fiscal consolidation, pension reform and improvement of tax administration along with quality control of public spending. In monetary policy needed to reduce inflation, to restore the volume of state reserves and to revive Bank lending».

The IMF stressed that the achievement of goals, namely the transformation stabilization to sustained economic growth is not an easy task. Previously, she has always been a challenge, and stop reforms only exacerbated the crisis in the economy.

«The authorities must be United in its determination to continue reforms, to resist the pressure of populists and representatives of different interest groups, — emphasize in the IMF. — Ukraine has made considerable by the formation of several authorities in the field of fight against corruption and campaign for the Declaration of the highest officials of their property. However, the results of the real fight against corruption, the country has not yet reached».

We will remind, on September 14 the international monetary Fund completed the second review of the four-year program of cooperation with our country, approved in March 2015, and decided to allocate to Kiev, the third credit tranche with a volume of $ 1 billion. Thus, the total amount already allocated funding amount of 7.62 billion dollars, with a total lending volume of 17.5 billion dollars.

September 16, Ukraine has received the third tranche of funds.

On 21 September, Parliament heard Prime Minister Vladimir Groysman with the presentation of state budget in 2017 and adopted the draft for consideration.

As reported earlier in the media appeared information that the IMF demands from Ukraine pension reform to receive the next tranche.

Among the requirements is called a gradual change of the retirement age, establishing one pension scheme without providing benefits for any of the professions (except the military), expansion of the basis for contributions to the social security system, the establishment of a fair tax regime for pensions.

However, Fund spokesman Gerry rice during a press briefing in Washington on 27 October confirmed the continuing ability of Ukraine to the end of the year, the fourth tranche.

At the same time, NBU head Valeriya Gontareva has called a high risk of non-receipt of money before the end of the year in connection with the inhibition of reforms in Parliament. She also stressed that the lack of the necessary decisions can endanger and barely achieved economic and financial stability.

The IMF has called the conditions of continuation of cooperation with Ukraine 18.11.2016

Ноябрь 18th, 2016 by
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