Ukraine and the international monetary Fund (IMF) finish discussion of technical details for signing of the updated Memorandum of cooperation. This was stated by the Minister of Finance of Ukraine Alexander danyluk.
“We need to write clearly to avoid any errors. I am sure that this week this process will be completed. When the Memorandum is agreed upon, there are certain technical and legal work – it needs to be completed,” – said Danilyuk, said that maybe the negotiations will be faster but may be slightly delayed.
Danyluk pointed out that in the Memorandum there is no requirement of raising the retirement age.
“Now, together with the IMF, we are developing a model of pension reform that does not require increasing the retirement age. There are other, more just tools. The key element is experience. Those who have experience, will have the opportunity to retire at the current age. If experience there will be other conditions. Increasing the retirement age and never will be – we believe that this is not right and fair. I think this model will be supported by the Parliament”, – said danyluk.
The Minister acknowledged that the IMF demanded increase in the retirement age, but at the moment the Cabinet together with the Foundation develops an alternative way to fill the Pension Fund.
He also stressed that the elimination of the “simplified taxation”.
“This is pure provocation. The elimination will not, it is not provided. We are a comprehensive reform of the tax sphere”, – said danyluk.
The Minister recalled that the cooperation with the IMF is extremely important for Ukraine.
“This reform is the financial support until the moment when our economy is fully self-sufficient. The fact that we have restored cooperation with the IMF, received a tranche in the fall and now in the last stages of discussion of technical points to obtain the next tranche is a signal, not only domestically, but also a significant signal for investors from outside and our foreign partners that Ukraine is on the path of reform.
Ukraine and the IMF in March 2015 signed a Memorandum of economic and financial policies which the country should undertake in the framework of the EFF.
Just program worked for Ukraine of about $ 17 billion of which have already been allocated 7,7 billion dollars. So, in September 2016 after a delay of a year, the IMF has approved granting Ukraine the third tranche in the amount of one billion dollars.
The Cabinet of Ministers of Ukraine expects that the size of the fourth tranche of the IMF loan under the program of expanded financing will amount to 1 billion U.S. dollars.
The government has reported that one of the biggest obstacles to receiving the next loan tranche from the IMF is the Pension Fund deficit.
If the Fund will cease cooperation with Ukraine – it will be a signal to other lenders and investors who are closely watching the decision of the organization.
