IMF mission leaves Kyiv – official statement looks disturbing

UKRAINE - In Brief 26 May 2017 by Dmytro Boyarchuk
The IMF released official statement on conclusion of its mission to Ukraine. It looks the IMF officers are unhappy with the progress they observed. The statement says “further technical work is needed” in the area of pension reform, land reform, privatization and anticorruption “to transform these into draft laws that meet the reform objectives”. And development of draft laws is not enough – they should be approved by the parliament “to pave the way for the completion of the fourth review”. If I read the message correctly, the IMF did not like the pension reform Prime-minister Volodymyr Groysman presented recently. I suspect that ‘pensions modernization’ (i.e. increase pensions) is the main stumbling block. As regards to land reform – it is still under hot discussion and final format have not been defined. Privatization and anticorruption (the IMF demands anti-corruption court) so far have been put on hold. This delay in filing draft laws on so sensitive issues was quite predictable (at least no surprise for myself). But I see efforts within the Cabinet to make the homework properly. The authorities still have a month and a half before MPs goes for vacation (on July 14th) to submit the draft to the parliament. However, the Cabinet should be extremely efficient to complete the work till the end of the session. Realistically, next wire is delayed till the fall in best case.

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