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Expert: IMF requirements is what Ukraine needs

"These reforms must be implemented regardless of IMF tranches."

Expert: IMF requirements is what Ukraine needs
Maria Repko
Photo: Photo: Serhiy Nuzhnenko

Mariya Repko, a deputy director of the Centre for Economic Strategy, has said that the reforms contained in the IMF requirements are necessary first and foremost for Ukraine.

"Our understanding is that these reforms should be implemented in principle, regardless of whether the IMF gives another tranche or not," Repko said at a roundtable hosted by Gorshenin Institute on 16 February.

As an example, she cited the situation in the Pension Fund. Currently, 10 million Ukrainians pay a single social deduction tax, many from their minimum wage, to pay pensions to 12 million pensioners. The demographic situation is unfavourable in Ukraine with the ratio of workers and pensioners getting from bad to worse.

"We have to do something about it, not only if the IMF says so. The normal retirement age in Europe is 63-67 years, and those are rich countries which can afford to support a greater number of pensioners," Repko said.

Likewise, she said that Ukraine and its citizens need a land market and other reforms contained in the IMF memorandum.