We move on. The IMF approves $1 billion wire. Next stop – agro-land market

UKRAINE - In Brief 03 Apr 2017 by Dmytro Boyarchuk

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The IMF approved fourth wire ($1 billion) for Ukraine under the Extended Fund Facility (EFF) program. This decision was long-awaited and was hotly welcomed by Ukrainian authorities especially after the Executive Board canceled its meeting two weeks ago. Luckily it was just a delay and the Fund was indeed interested to see updated macro-numbers. Given the positive decision the IMF does not see trade blockade as a threat for macro-stability. What will be next? At the release the IMF mentioned privatization, agro-land market, fight with corruption, increase in retirement age, and budget revenues administration reform. From this list agro-land market and budget revenues administration reform are already in the pipeline while all other points remain wishful thinking. In particular, in my opinion, new increase in retirement age does not look politically feasible and previously Prime minister publicly committed not to do this. Against this backdrop we should expect the Cabinet concentrating on land reform and on tax administration reform over the nearest future. By the way today the Cabinet approved an action plan for 2017 with draft law on agro-land circulation scheduled for July. A draft law was already presented by Ministry of agricultural policy to expert community few weeks ago. The main points of the draft are the following: foreigners and legal entities are banned from land purchase;no more than 200ha land plot in one hands;from 2018 lands in state ownership will be subject for sale; from 2020 all lands will be for free circulation;limitations on immediate resale of land; The draft law is under discussion and very likely many changes will be introduced. But the good si...