Ukraine cannot afford to delay comprehensive pension reform much longer, including by raising the effective retirement age, the IMF said in a press release following a Monday meeting of the Executive Board on the Ukrainian issue.
”Notwithstanding the large fiscal adjustment, public debt remains high. The urgency of structural fiscal reforms to ensure medium-term sustainability has increased, as pressures to raise wages and pensions are building,” the press release reads, referring to First Deputy Managing Director and Acting Chair David Lipton.
According to Mr Lipton, sustained efforts are also needed to improve revenue administration and advance public administration reform.
Earlier, Ukraine`s key creditor, the International Monetary Fund, on April 3 completed its third review of the Extended Fund Facility and approved the fourth loan disbursement worth $1 billion.