IMF to assess impact of amendment on new payments and restrictions in public sector of Ukraine

The International Monetary Fund (IMF) will study the legislative amendment adopted by the Verkhovna Rada of Ukraine on April 10 on the return of payments of UAH 30,000 to military personnel, simultaneously limiting payments in the public sector, state-owned enterprises, the NBU, NABU, and other government agencies with a limit of UAH 67,000 and will evaluate its impact.

IMF mission chief for Ukraine Gavin Gray told Interfax-Ukraine that the IMF is aware of the amendment adopted on April 10 by Parliament regarding the legal basis for applying measures related to martial law, and the Fund is now assessing its impact.

Asked about the extent to which Ukraine has already fulfilled a number of its obligations under the Extended Fund Facility (EFF) program, in particular, whether quantitative criteria were met at the end of March, the chief of mission said that it was too early to comment since the new program was approved just over a week ago.

There is no comment from the Ministry of Finance on the possible impact of this amendment on the budget and cooperation with the IMF. According to Yaroslav Zhelezniak, Deputy Head of the Parliamentary Committee on Finance, Taxes and Customs Policy (the Holos parliamentary faction), the implementation of this amendment will require an additional UAH 146 billion in spending.

On April 11, MP Volodymyr Tsabal (the Holos faction) submitted to the Rada a draft resolution to cancel the decision on this amendment. Until the consideration of this resolution, the Rada chairman cannot sign the bill with the amendment and send it to the president.


Leave a Reply

Your email address will not be published. Required fields are marked *