Ukraine may lose IMF funding due to delays in Rada’s decisions on tax hikes, - Bloomberg
The International Monetary Fund has expressed concern about Ukraine’s ability to secure the remaining funds from the $8.1 billion package, as members of parliament are delaying the passage of necessary legislation in the Verkhovna Rada.
This was reported by Censor.NET, citing Bloomberg.
The IMF is concerned about the Ukrainian parliament's delay in making decisions
As noted, the Ukrainian parliament has until the end of March to pass a series of legislative amendments that would raise taxes on businesses and households as part of the latest four-year credit program, which was approved last month.
"But the lawmakers have so far failed to debate several of the changes requested by the IMF in an expression of defiance against President Volodymyr Zelenskiy, potentially plunging the parliament into paralysis," the publication states.
Unpopular measures
It is also noted that these measures are extremely unpopular with the general public in the fifth year of the war, but they must be adopted to unlock the remaining funding. Kyiv has already received $1.5 billion under the latest program.
"I can say that I am concerned," Priscilla Toffano, the IMF’s Resident Representative in Ukraine, told Bloomberg.
IMF meeting with Ukrainian lawmakers
According to the publication’s sources, IMF officials led by mission chief Gavin Gray plan to meet with Ukrainian lawmakers starting March 18.
The goal is to discuss the necessary changes required to secure further funding.
What preceded it?
As noted, the Rada failed to pass the government’s bill on a tax on Uklon and OLX. This is a commitment to the IMF.
As a reminder, Ukraine received the first $1.5 billion tranche from the IMF under the new EFF program.
