The International Monetary Fund signals a possible suspension of funding for Ukraine within the framework of the program for $8.1 billion due to a delay in voting in the Verkhovna Rada to increase submissions. It is reported by Bloomberg, informs the portal PromPolitInform.
By the end of March, the parliament should adopt a package of decisions providing for a significant increase in the tax burden. Among the conditions required to obtain the following tranches:
- increasing taxes for business and citizens;
- introduction of VAT for the simplified taxation system;
- reducing the limit of duty-free import of parcels from abroad to 150 euros.
The IMF calls these steps critical for the continuation of the four-year loan program approved last month.
Meanwhile, in the Verkhovna Rada, some of the necessary bills have not yet been submitted for consideration, which creates the risk of blocking further payments to the IMF. Priscilla Toffano, Permanent Representative of the Foundation in Ukraine, explicitly stated that the situation is worrying.
Ukraine has already received $1.5 billion under the new program, but further funding depends on the fulfillment of the above obligations.
The progress of decisions is complicated by internal disputes: some deputies do not support government initiatives, despite pressure from the authorities. President Volodymyr Zelenskyy reacted sharply to the delays, saying that MPs who do not work for the state in parliament should do so at the front.
The delay is taking place against the backdrop of growing financial risks: the budget deficit may appear in the coming months, and part of the EU’s assistance remains blocked (due to the veto of Hungary and Slovakia – because of the “zaruba” for “Friendship”). Therefore, in case of lack of funds, the government may again resort to direct financing through the National Bank.
As Bloomberg reported, the IMF plans to hold additional consultations with Ukrainian deputies in order to speed up decision-making and avoid disrupting the program.
And today, March 18, it became known that the team of the International Monetary Fund (IMF), headed by the head of the mission for Ukraine Gavin Gray, began meetings in Kyiv with the Ukrainian authorities on the program of expanded financing of the EFF for $8.1 billion.
“The discussion will cover macroeconomic policy and key structural reforms,” said Prishila Tofano, Permanent Representative of the Fund in Ukraine.
But it seems that the representatives of the IMF decided to ask the parliamentarians a question of the edge – does Ukraine need a loan or not? And what they are ready to do for this.
Recall that Ukraine received the first tranche from the IMF under the new EFF program on March 3. This is $1.5 billion, which has already been credited and will be used to finance priority budget expenditures. These funds were actually provided to Ukraine in advance, even before the fulfillment of the conditions stipulated by the standard memorandum with the Fund – in view of the critical situation with Ukrainian finances.
Ukraine has actually undertaken to adopt a package of tax measures by the end of March, which provides, in particular, a contradictory norm on mandatory registration by VAT payers of individual entrepreneurs – “simplified.” True, in the process of acute public discussions, it was proposed to raise the threshold of annual income from which it is necessary to register as a VAT payer to more than UAH 4 million from January 1, 2027.
In addition, the parliament on March 10 rejected the bill No. 14025 on the taxation of income received through electronic platforms, which was also part of the agreement with the IMF: only 168 deputies voted for the required minimum of 226 votes.
Photo – from open sources
