IMF calls on Ukraine to carry out pension reform

The International Monetary Fund (IMF) said that the decisive condition for the revision of the cooperation program with Ukraine is the pension reform implementation. It was stated by IMF official representative William Murray during a briefing in Washington, Interfax-Ukraine reports.

"We call on the authorities and parliament to ensure that the bill on increasing pensions reaches the reform goals that have been developed by the IMF and the World Bank. We are ready for further cooperation with the authorities regarding any possible changes that may be required in this draft law," Murray said.

In June, the IMF and World Bank supported the draft pension reform in Ukraine. In May, the Ukrainian government approved a draft pension reform and sent it to the Reform Council, RBC-Ukraine reported. Then, the Prime Minister of Ukraine, Volodymyr Groysman stated that he was completely “responsible for the implementation of the project." He promised that from October 1, 2017 pensions would be raised for about 9 million pensioners.

The goal of the reform is to reduce the deficit of the Ukrainian Pension Fund and to increase the size of the pensions. The Director of the European Department of the IMF, Paul Thomsen reported that Ukraine has the world's second largest deficit in the Fund relative to the country's gross domestic product.

In May 2017, the World Bank approved a loan to Ukraine for $150 million. World Bank Director on Belarus, Moldova and Ukraine, Satu Kahkonen stated that Ukrainian partners "have a creative and unique business potential and can produce high-quality competitive products." The project should be implemented by Ukreximbank.

In April 2017, the IMF allocated $1 billion credit tranche to Ukraine. The total amount of aid was $8.4 billion. "The Ukrainian economy shows the coveted signs of recovery," it was stated in the IMF report.

  IMF, pension reform, Ukraine