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IMF reiterates conditions for Ukraine to receive next tranche

Among the requirements the increase in gas prices.

IMF reiterates conditions for Ukraine to receive next tranche
Photo: Photo: EPA / UPG

The International Monetary Fund says the disbursement of the next tranche to Ukraine depends on the adoption of the law on privatization, creation of an anti-corruption court, and an increase in natural gas prices.

"The conditions are the adoption of the law on privatization, which will provide transparent sale of state assets. A previous requirement was the already adopted pension reform. We are now estimating how it corresponds to the pension system," IMF Resident Representative in Ukraine Jost Lyungman said on Friday as quoted by Ukrainian News.

"For the fourth review of the program [the government has to] create an anti-corruption court and settle the issue with the price of gas, ie the decree [№187] adopted by the government in February.

The Cabinet of Ministers of Ukraine has refused to raise gas prices for households, which was supposed to be come in effect on 1 October, and sent the Fund a proposal to change the formula for calculating the price.

Judging by the Lyungman's statement, the IMF disagreed.

Lyungman also noted the need for land reform.

"We have not abandoned this reform. We have decided to postpone it until 2018 to allow time for its comprehensive development and a consensus in society," he added.

The IMF representative noted that Ukraine has implemented 2/3 of the program to receive 12.5 bn dollars in previous tranches.

Among the most important reforms he mentioned the reform of the banking sector, a floating currency exchange rate, inflation targeting, creation of NABU and the reform of the energy sector.

Previously, the National Bank of Ukraine said the chances to receive IMF tranche this year were slim to none.