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IMF mission head stresses importance of pension and land reforms

IMF mission head stresses importance of pension and land reforms
Photo: Photo: EPA / UPG

The mission of the International Monetary Fund, which was in Ukraine since May 16 to begin discussion of the allocation of the fifth tranche under the EFF credit program, completed its work.

The head of the mission, Ron van Roden, issued a wrap-up statement on Friday, 26 May, in which he stressed the importance of adoption of pension and land reforms in Ukraine.

"The implementation of structural reforms remains a key factor in ensuring strong and sustained economic growth, so necessary for Ukraine in the medium term. In this regard, the mission held constructive discussions with the authorities on reforms needed to improve productivity, attract investment, and continue to strengthen public finances. As envisaged under the program, discussions focused on the pending pension and land reform and on measures to speed up the privatization process and ensure concrete results in anticorruption efforts," he said.

The allocation of the fifth tranche depends on whether the Verkhovna Rada supports the relevant draft laws.

In March 2015, the IMF opened a four-year EFF program for Ukraine worth 17 bn dollars. It assumed a quarterly review of the program and the allocation to Kyiv, four tranches in 2015, and four more in 2016. Ukraine received the first 5 bn tranche in March 2015, the second, 1.7 bn in August 2015, and the another 1 bn dollars in September 2016.

The allocation of the fourth tranche has been long delayed due to the ongoing coordination of reforms.

Only on 3 April, 2017, the IMF Board of Directors completed the third revision of the EFF extended financing program for Ukraine.

On 5 April, the IMF transferred to Ukraine $ 1 bn in the fourth tranche.