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IMF ready to put land reform on backburner

It will be mandatory during the next revision of the credit program.

IMF ready to put land reform on backburner
Photo: Photo: EPA / UPG

The International Monetary Fund has confirmed that it is ready to exclude land reform from the terms of granting the fifth tranche of the credit program, Reuters reported on Friday, 7 July. "It is a critical reform, it's a key area. While we would be willing to let it go for the current review we will look for it for the next review," he said, also pointing to the moratorium on land sales expiring in 2018.

"It's important that legislation on land is put together and put to parliament before the end of the year."

Among the important requirements of the IMF, which must be met to receive the fifth tranche in Ukraine bailout program is still pension reform and the creation of the financial police.

In March 2015, the IMF opened a four-year program EFF for Ukraine with a total volume of SDR12.348bn (about 16.75bn dollars at the current rate) with the first tranche of 5bn dollars. Initially, it envisaged a quarterly revision of the program and the allocation in 2015 of three more tranches of SDR1,18bn (about 1.6bn dollars) and a decrease in quarterly tranches in 2016–2018 to SDR0.44bn 0.6bn dollars).

Ukraine received a second tranche with a short delay of 1.7bn in early August 2015, after which there was a long pause in connection with the failure of a number of conditions, a political crisis and a change of government.

After the arrival of the new Cabinet headed by Groysman in April 2016, talks on the continuation of funding were resumed, but the IMF decided to allocate a third tranche of 1bn dollars only in mid-September, the fourth – on April 3, 2017.

According to the new schedule, three revisions were planned by the end of 2017: the fourth in mid-May, the fifth in mid-August, the sixth in mid-November. If the authorities successfully meet the requirements set by the program, Ukraine may raise 1.907bn dollars following the results of the fourth revision, 1.28bn after the fifth revision, and 1.28bn in the sixth, 4.46bn dollars in total.

In 2018, the next four revisions are planned, following which Ukraine can attract about 955mn dollars. In all - about $ 3.82bn.

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