An Infobank correspondent has learned from sources close to the Ukrainian government delegation holding talks with the International Monetary Fund’s mission in Kyiv that this mission headed by Stanley Fisher, IMF First Deputy Managing Director, has agreed with the Ukrainian government to a package of 87 requirements that Ukraine is to meet in order to receive a new EFF loan of $2.5-2.7 billion US. 33 of these requirements must be met before a loan agreement can be signed.
Some of the 33 pre-agreement requirements are that in 1998 Ukraine keep to the macrofigures agreed upon with the IMF, approve changes to the law on the state budget aimed at reducing the deficit, reduce levies on payroll funds, submit draft laws on state-run and private pension funds, the VAT rate be reduced, all preferences in paying the VAT be abolished, the system of subsidies for utilities be abolished, profits of budget establishments within the structure of state treasury be consolidated, a concept of administrative reform be approved, and the practices of inspections and imposing fines on businesses be put in order.
In an interview with an Infobank correspondent People’s Deputy Serhiy Teriokhin said that nowadays Ukraine should not receive the EFF credit at all as it could not fulfill even those 20-25 preliminary requirements set by the IMF in order to get a standby credit. According to Mr. Teriokhin, the IMF’s requirements for the new loan will be tougher still. Hence Ukraine is also unlikely to fulfill them. Mr. Teriokhin is convinced that under these circumstances Ukraine must resume talks with the IMF concerning resumption of the standby program on softer terms.






