The document does not specify the sources of financing additional costs in the amount of $4 billion and will negatively affect the economy of Ukraine, according to the Fund.
The bill adopted by the Verkhovna Rada on the return of “military” payments in the amount of 30 thousand Hryvnias is unbalanced and may lead to an increase in the budget deficit. This is what the Permanent Representative of the International Monetary Fund (IMF) in Ukraine Vahram Stepanyan said, Interfax-Ukraine reported on May 1.
He noted that the document does not specify sources of financing for additional costs equal to more than four billion dollars.
“The search for resources of this magnitude probably involves drastic short-term tax measures or significant borrowing in the domestic financial market, but such measures are almost impossible without negative effects on the economy and the financial market ,” Stepanyan stressed.
The IMF spokesman added that loans to finance such spending could further jeopardize Ukraine’s debt sustainability, which is already under pressure.
He recalled that as part of the implementation of the EFF program, Ukraine is trying to ensure fiscal sustainability and predictability of the budget policy, which was changed during the COVID-19 and as a result of the war.
“In this context, the authorities have undertaken to renew and strengthen the operation of Article 52 of the Budget Code, which defines and regulates the legal framework and circumstances in which changes can be made to the budget in terms of both revenues and expenditures,” Stepanyan said.
Earlier, the head of the National Bank, Andriy Pyshny, said that the Verkhovna Rada’s decision to restore additional payments to all military personnel at the level of 30,000 Hryvnia complicates negotiations with the IMF and contradicts obligations by the Ukrainian authorities.
As reported Correspondent.netOn April 10, Parliament voted to return UAH 30,000 to the military, police, and employees of the State Emergency Service.
A vote is expected in the Verkhovna Rada on a resolution “blocking” the bill.
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Source: korrespondent
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