Economy 2020-10-15T07:31:33+03:00
Ukrainian news
IMF Advocates Against Ukraine's Changing Tax Policies

IMF Advocates Against Ukraine's Changing Tax Policies

IMF, Ukraine, tranche, Lagarde

The International Monetary Fund advocates against Ukraine's changing its tax policies, if such changes can lead to a bigger budget deficit in the country.

The press service of the International Monetary Fund gave the position citing IMF Managing Director Christine Lagarde, Ukrainian News Agency reports.

The statement reads that Ukraine's authorities should refrain from changing the tax policies if such changes lead to a bigger budget deficit. The government should focus on improvement of tax and customs administrations.

IMF Managing Director Lagarde also calls for a pension reform in Ukraine.

"Moreover, parametric pension reform is crucial to reduce the pension fund's large structural deficit, help reduce fiscal deficits and public debt, and create room to bring pensions to sustainable levels over time," the press service quoted Christine Lagarde as saying following he Executive Board's discussion.

"Monetary policy has been skillfully managed and financial sector reforms have started to yield results. Priority should continue to be given to reducing inflation and rebuilding international reserves, also to make room for the gradual removal of remaining administrative measures," she said.

As Ukrainian News Agency earlier reported, the International Monetary Fund has adopted a decision to allocate USD 1 billion for Ukraine as the third tranche within the Extended Fund Facility Program.

Initially it was planned that the third tranche will make USD 1.7 billion and it was supposed to be allocated to Ukraine in 2015.

The Ukrainian authorities announced then that the International Monetary Fund would adopt a decision on allocation of the third tranche in June 2016.

For Ukraine's failure to meet all conditions the International Monetary Fund cut the third tranche from USD 1.7 billion to USD 1 billion.

Ukraine expects to get two tranches from the International Monetary Fund this year, but a representative of the IMF said there may be only one tranche this year.

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