$1.66 billion IMF tranche at risk: Ukraine faces new requirements
Photo: Roksolana Pidlasa, head of the budget committee (Vitalii Nosach, RBC-Ukraine)
Ukraine risks failing to receive $1.66 billion from the International Monetary Fund by the end of the year. The main reason is delays in adopting the necessary laws and implementing reforms, stated Roksolana Pidlasa, head of the parliamentary budget committee.
According to the lawmaker, delays in making the necessary decisions were the key issue discussed during a meeting with the IMF mission in Kyiv. Ukraine is currently making insufficient progress on critical legislation.
"When we talk about the next IMF tranche, it is not only about $1.66 billion in budget financing, because fulfilling the IMF cooperation program remains a condition for receiving assistance from the European Union," Pidlasa said.
Requirements for receiving the tranche
To complete the program review, Ukraine must take several mandatory steps in parliament:
- sign draft law No. 15111-d, which has already been adopted and introduces taxation of digital platforms (the main obstacle is an amendment concerning politically exposed persons, or PEPs, which puts EU assistance at risk);
- adopt accompanying draft law No. 15112-d on the taxation of parcels;
- amend the law on the National Energy and Utilities Regulatory Commission to strengthen the regulator’s independence and update appointment procedures;
- appoint new members of the Accounting Chamber (the next step after establishing a selection commission, which parliament failed to support on September 1);
- submit three government bills to parliament (they do not necessarily have to be passed by the end of the year).
The remaining requirements concern decisions by the Cabinet of Ministers and individual government agencies, where, according to the lawmaker, there should be no delays.
