: :inin Kyiv (EET)

IMF demands Ukraine to implement a pension reform, reduce the number of state employees, abolish the simplified tax system and open a land market


The recent version of the Memorandum of Cooperation between Ukraine and the International Monetary Fund (IMF) states that Ukraine should implement a pension reform, reduce the number of state employees, abolish the simplified tax system and open a land market, in total for 12 structural points.

The Cabinet of Ministers of Ukraine should make a decision on the monetization of subsidies until the end of January 2017 and implement pension reform to the end of March 2017.


See also: Expected IMF tranche to Ukraine may be cut to $1 billion


The new plan provides for a gradual increase in the retirement age. Regarding men, the beacon says that starting from July 2017, the retirement age will be increased by four months every year. As for women, starting after 2021, this increase will be by six months every year. This will happen until both groups set their retirement age at 63 years in 2027.

The plan also provides for an increase in the length of service to up to 25 years from January 2017 with the imposition of the minimum labor experience set at 16 years.

Ukraine should implement reforms on the land market. The new deadline was set for the end of March 2017.

“To this end, we have establish a working group with relevant ministries that, in collaboration with the World Bank, will draft legislation to open up the land market and allow to sale of land,” states the document.


See also: IMF want to launch land market in Ukraine waiting for significant economic gains


An international company with a good business reputation should be chosen to audit PrivatBank. The deadline for this was set to the end of January 2017. Auditors are also called to find whether there had been any breaches in the preparation of financial reports over the period of six months preceding the nationalization date.

The international auditor for the assessment of the restructuring terms by PrivatBank’s shareholders should be chosen. The deadline for this was set to the end of June 2017. Also, the company should assess whether the restructuring terms allow for the compensation of losses for the loans granted to related parties.

Ukraine should create a unified register of recipients of social payments until the end of June 2017. The creation of this register is necessary for the continuation of the process of the verification of social payments. However, there has been no progress except for discussions and a few initiatives.

In addition the government should create the legislative field for the work of the anti-corruption courts. The deadline for this was set to the end of June 2017.


See also: Ukraine expects IMF decision on next loan tranche by end of January


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