IMF Sets Tough New Ukraine Loan Demands
World Economy

IMF Sets Tough New Ukraine Loan Demands

The International Monetary Fund said on Friday it will only release a new tranche payment to Ukraine once parliament approves a long-stalled pension system overhaul and land privatization legislation.
The IMF said after completing its latest mission to the war-torn country that Ukraine’s economy was continuing to recover from a dire recession and was on course to expand by more than 2% of gross domestic product this year, AFP reported.
Ukraine is using a $17.5-billion IMF lifeline to recover from crises sparked by a Russian-backed war in the separatist industrial east that began in April 2014 and has claimed more than 10,000 lives.
The loss of industries in the war zone and flight of foreign investors saw the former Soviet republic’s economy shrink by 17% in 2014-2015.
But the IMF now expects Ukraine to achieve sustainable growth by cutting the expense of a pension system that accounts for 9% of gross domestic product and supports about one third of the population.
It also wants land sales approved by a parliament in which the government holds only a slim ruling majority and where opposition to the proposal is strong. The IMF said its “discussions focused on the pending pension and land reform and on measures to speed up the privatization process”.
“Securing parliamentary approval of these draft laws will be needed to pave the way for the completion of the fourth review,” it said in a statement.
Ukraine has so far received only $1 billion of the $4.5 billion it hopes to see from the IMF this year.

Short URL : https://goo.gl/dqIeJW
  1. https://goo.gl/8NeBMQ
  • https://goo.gl/2hD25R
  • https://goo.gl/RUln4y
  • https://goo.gl/rE10wK
  • https://goo.gl/aZqqzO

You can also read ...

Philippines Rating Upgraded
Fitch Ratings on Monday upgraded Philippines’ credit rating to...
Beijing’s growing determination to curb debt-financed growth has already triggered a sharp sell-off in China’s government bond market and is fuelling concerns that the economy will slow, thus crimping global demand for commodities.
Inflows into emerging market bond and equity funds have been...
UNDP Says BRI Can Create Sustainable Growth
The Belt and Road Initiative has tremendous potential for...
Diverse Views Fuel Bleak Prospects for WTO Meeting
The World Trade Organization’s Buenos Aires meeting commenced...
Hackers Hit Major ATM Network
A previously undetected group of Russian-language hackers...
Will Cryptocurrencies Replace Dollar in Oil Trade?
The gradual acceptance of digital currencies, with major...
Base metals remain vulnerable to market factors.
The market for base metals is projected to grow at a robust...
ECB Sees More M&As in Bank Sector
Merger activity in the eurozone bank sector is likely to...

Add new comment

Read our comment policy before posting your viewpoints

Enter the characters shown in the image.