The #IMF plays a vital role in keeping the #Ukrainian #economy afloat during the times of deep crisis. On May 26, the IMF concluded yet another #mission to Ukraine. This time, the mission was led by Ron van Rooden who came to #Kyiv to discuss the 4th #revision of cooperation in the framework of the #Extended #Fund #Faculty.
Visit our website if you are interested in the #Ukrainian_economy or #doing_business in Ukraine.Visit our website if you are interested in the #Ukrainian_economy or #doing_business in Ukraine.
The discussion also revolved around the necessity of realization of pension and agrarian reforms. The reforms involve the increase of retirement age and the introduction of the market of agricultural land. Currently, the Ukrainian parliament keeps the moratorium on the sale of land and resists the IMF’s recommendation regarding pension reform, as both initiatives have already sparked a heated discussion within Ukrainian society and political circles. However, the IMF insists that these measures are of vital importance for the survivability of Ukrainian economy and the continuance of fruitful cooperation between both parties.
The statement that was released at the conclusion of the IMF Mission to Ukraine reads as follows: “The economy of Ukraine is undergoing the process of recovery with the expected annual growth rate at more than 2%. The realization of fiscal and monetary policies would allow the government of Ukraine to adhere to its obligations for the year 2017. The gross international reserves continue to grow, having reached the level of $17.6 billion, while the expected inflation rate would not exceed 10% by the end of the year. Given the positive short-term expectations, the resolute implementation of structural reforms is still viewed as a key factor that would ensure a much stronger and sustainable economic growth that Ukraine needs in the medium term.”
It appears that the Ukrainian political establishment would have to back down and be less dismissive of the IMF recommendations due to the country’s tremendous dependency on exogenous investments. Both parties have reached the preliminary agreement, and the only thing left is to ensure the parliamentary support of the proposed formula.