The Board of Directors of the International monetary Fund postponed the discussion of anti-crisis program in Ukraine, scheduled for March 20. About TASS reported, citing a source in the IMF.
The meeting was planned to decide whether to allocate Ukraine tranche in the amount of $ 1 billion. In the notice, sent Tuesday, March 18, States that “a short delay is necessary to assess the developments and policy measures affecting the financial sector and wider economic prospects.”
Date of the next meeting has not yet been determined. The source described the postponement of the discussion unprecedented.
On 15 March the Ukrainian edition of “Vesti” reported that the citizens of the country will lose tens of thousands of hryvnia on subsidies and pensions, if Kiev agrees with IMF conditions. For tranche, according to the newspaper, authorities will need to freeze the indexation of social benefits, reduce public subsidies and pension reform.
On March 4, Ukraine signed a Memorandum of cooperation with the IMF. This opened the possibility to discuss the issue of allocation to Kiev the next tranche. Finance Minister Alexander danyluk said that the agreement is “the result of the implementation of the country agreed with the Fund’s reform program and the joint teamwork of the President, the government and the National Bank.”
In early January, the Fund has established a number of requirements to Ukraine, doing that the country will be able to get a new tranche. Among the conditions include raising the retirement age, privatization of enterprises, reducing the number of civil servants and state employees and the opening of the land market.
At the end of last year, the international organization has transferred to Ukraine the second tranche of financial aid from the European Union in the amount of 55 million euros.
The IMF Executive Board in September decided to allocate Ukraine tranche of a billion dollars in a four-year programme of assistance (the amount in excess of $ 17 billion).