IMF Names the Conditions That Kiev Must Fulfil for a Fifth Tranche

Translated by Ollie Richardson


Before the end of May it is necessary to approve the law on the sale of agricultural land.

Ukraine expects to receive the next tranche of the International Monetary Fund of $1.9 billion in May of this year. But for this purpose it is necessary to satisfy six important conditions, report “Ukranews”.

These are so-called “structural beacons”. In total there are 11 of such conditions, but before the end of May it is necessary to fulfil six.

In particular, before the end of April it is necessary to accept the concept of pension reform at the legislative level, and to approve a new body instead of the tax police.

And until the end of May it is necessary to approve the law on the sale of agricultural lands.

As reported, the day before the President Petro Poroshenko stated that the IMF approved the fourth tranche to Ukraine of one billion dollars. According to him, it is “further recognition of Ukrainian reforms”.

Earlier the full text of the memorandum between the IMF and Ukraine was published.


Date of fulfilment
The choice of an internationally recognized firm through a transparent process that will conduct negotiations on restructuring and the conditions of the collection of debt on the debt credits of Privatbank, making use of the best world experience; the choice of an internationally recognized auditor firm to carry out a semi-annual independent revision of the credit portfolio (according to the legislation and normative legal acts of the NBU) for the purpose of appropriate monitoring of the recovery process of the value of assets. April, 2017
The Verkhovna Rada will adopt pension legislation as it is defined in the Memorandum of economic and financial policies. End of April, 2017
The adoption by the Verkhovna Rada of the legislation on the creation of a new civil service responsible for investigating financial crimes against the State under the control of the Ministry of Finance as a replacement of the present tax police and consolidation of all powers in the fight against financial crimes against the State in to one agency, thus avoiding duplication of functions. End of April, 2017
Approval by the Verkhovna Rada of Ukraine of the law on the turn over of agricultural lands, to provide the completion of the moratorium on the sale of agricultural land before the end of 2017, thus allowing the sale of land under State and private ownership after that. End of May, 2017
Reviewing of framework parameters of municipal subsidies to households targeting improvement; introduction of adjustment of social norms at offpeak months during the heating season; and application of a tariff for the delivery of gas and heating on the basis of a capacity that will allow to transfer some part of the cost in summer months – all changes will come into force as of May 1st, 2017; accordingly, maximum expenses on municipal subsidies to households will be 47 billion in 2017. End of July, 2017
Adoption of the Resolution by the Cabinet of Ministers on the monetization of municipal subsidies at the level of enterprises providing utilities. End of August, 2017
To create a centralized database of recipients of social help in the Ministry of Finance. End of December, 2017

Conditions that are not satisfied and the fulfilment date of which is postponed

The Verkhovna Rada will accept changes to the legislation, according to recommendations of IMF specialists, for the strengthening of the recognition procedure of insolvent enterprises (memorandum of economic and financial policies before September, 2016.) End of September, 2017
The Verkhovna Rada will adopt a law that strengthens provisions to Civil and Economic procedural codes concerning the fulfilment of a court order for the payment of debt on domestic transactions and on the seizure of means in bank accounts. End of September, 2017
The Cabinet of Ministers will accept and will publish on the website of the Ministry of Economic Development and Trade of Ukraine a complete classification (grouping) of all State enterprises, having divided them into enterprises that (i) remain in management of the State (including the enterprises located on the territories temporarily uncontrolled by the Government) (ii) have to be privatized; or (iii) are liquidated; and the enterprises, are transferred to the State Property Fund of Ukraine and included in the plan of privatization. End of August, 2017
Approval by the Verkhovna Rada of the legislation providing NABU the right to: (i) use of a wide range of investigation methods, including undercover operations, interception of messages, access to computer systems and controlled deliveries without the need to rely on the infrastructure of other departments; and (ii) registration of pre-judicial cases and resolutions of investigative judges that concern NABU must be protected from informational leakage connected with the current investigations by a restriction of access to the information of NABU and SAP officials until the moment when the legal investigation is complete, or the case is closed. End of May, 2017
The Verkhovna Rada will adopt legislations: (i) to gradually adjust the generally established retirement age and to further narrow the range of opportunities of preliminary retirement; (ii) to toughen the criteria that grants the right to a minimum pension; (iii) to consolidate the pension legislation that is now submitted by nearly two dozen laws and to provide a uniform principle of granting pensions without any professional privileges (except for military) (iv) to expand the base of contributions to social insurance; (v) to provide equitable tax treatments of pensions; and also (vi) better coordinated privileges and social contributions, in particular, for the purpose of encouragement of declaring actual income. In addition, we will separate various categories of surcharges to pensions from labor pensions, we will transfer their financings from the pension fund to the State budget and we will improve their target performance. End of April, 2017
The Verkhovna Rada will adopt amendments to the law on privatization for the improvement of transparency and strengthening of protective mechanisms, and for further optimization of the privatization process. End of August, 2017
Adoption of the legislation on the merging of customs and tax administration into one legal entity.

End of March, 2017

READ:  The West's “Complex Projects”


Copyright © 2022. All Rights Reserved.