Ukraine has proposed that the IMF, its alternative pension reform media

The Cabinet of Ministers is prescribed in the draft of the Memorandum of Ukraine and the International monetary Fund (IMF), its version of pension reform. About it writes “Economic truth”, referring to yet unpublished project Memorandum.

In particular, according to the newspaper, the IMF demanded to be taken before the end of March 2017 pension reform, which includes increasing the age of retirement for men for 4 months each year, beginning July 1, 2017, and for women in the future to raise the age by six months every year after until 2021 until men and women reach retirement age at 63 years (2027. – Ed.). Also, at the suggestion of the IMF, the pension reform should provide for further narrowing of the possibilities of early retirement, in particular by transferring workers in the sector of education and health to the General regime retirement July 1, 2017.

The Cabinet of Ministers rejected the proposal of the Foundation and offered his own version of pension reform.

As pointed out by the media, the draft Memorandum noted that the Verkhovna Rada will take until the end of April 2017 comprehensive pension reform, which will enter into force on 1 January 2018.

“The reform will involve a new set of options for retirement with more than the existing range of retirement age, which involves considerable choice, depending on the General seniority, and retirement benefits, which encourage people to continue working and later retirement”, – quotes the edition of the government’s proposals.

Also the new reform, according to the publication, provides cost savings amounting to at least 3% of GDP in the long term (compared to the level of expenditure in 2016), including by increasing the effective seniority for retirement. In addition, it must ensure that citizens of Ukraine will receive pensions that are relative to that paid their contributions and adequate in real terms.

“This common system will be applied to all types of employment, with the exception of a limited list of hazardous occupations”, – the document says.

The publication stresses that these items are still inconsistent.

We will remind, recently the managing Director of the IMF Christine Lagarde said that the Fund talks with Ukraine on allocation of next tranche to go well and a number of key issues have been resolved.

Earlier the head of the NBU Valeria Gontareva predicted the receipt of the next tranche from the International monetary Fund in late February or early March.

The Board of Directors of the IMF is not planning in the near future to consider the allocation of Ukraine the fourth credit tranche. So, the schedule of meetings of the Council provided the next meeting on February 17. It is noted that this day held consultations with the government of Malta and post-program monitoring of the economy of Portugal. However, the issue of granting Ukraine a quadruple tranche of the schedule of meetings is missing.

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 extended Fund (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.