11:48 Jun. 6, 2016
Kyiv and Fund agree on key issues of reform programme
Ukraine and its key creditor - the International Monetary Fund (IMF) - agreed on major issues of the Memorandum on the second revision of the reform programme, approved in March 2015.
"We reached an agreement on important issues, and there are several more issues to be agreed upon - said Lipton. - If the Ukrainian government and the IMF approve amendments, Ukraine will receive the next tranche in July or August".
Lipton declined to specify which details require approval, but said that the most pressing issue - Ukraine's pension reform is - will be discussed later and currently is not on the agenda.
"Ukraine's pension reform will be discussed in future. But it is clear that the pension system is bad an most retirees do not receive a decent pension in Ukraine ", said IMF's first deputy managing director.
However, he stressed that in addition to the pension reform, Ukraine should make other necessary steps that would ensure its economic growth and living standards of citizens. "Statistics show that structural reforms are underway, the banking system is improved, and Ukrainians should keep moving forward", said Lipton.
The four-year EFF (Extended Fund Facility) programme worth about USD 17.5 billion originally foresaw quarterly reviews of the program, the disbursement of four tranches to Kyiv in 2015, another four in 2016. However, at present, the country has received only the first tranche worth USD 5 billion on March 13, 2015, and the second one worth USD 1.7 billion arrived on August 4, 2015.
At the moment the parties agreed on all issues concerning the second review of reforms and discussed monetary, banking, anti-corruption, pension reform, and privatization aspects. However, the Memorandum which envisages further commitments was not yet signed.
Meanwhile, Ukraine's president Petro Poroshenko said that the document should be signed soon and the IMF Board of Directors should meet earlier in July.