IMF concerned about Ukraine's financing due to parliamentary delays
Kyiv • UNN
The IMF is concerned about the deputies' delays in raising taxes for businesses and the population. This jeopardizes the receipt of tranches totaling $8.1 billion.
The International Monetary Fund has expressed concern about further financing for Ukraine under the $8.1 billion program due to delays in necessary decisions in the Verkhovna Rada. This was reported by Bloomberg, writes UNN.
Details
Ukrainian deputies must adopt a package of changes by the end of March, which provides for an increase in taxes for businesses and the population. These steps are a condition for receiving subsequent tranches of aid.
Risk of losing funding
Currently, the parliament has not considered some key initiatives, which creates a risk of blocking the program.
I can say that I am concerned
Ukraine has already received $1.5 billion under the new program, but further payments depend on the fulfillment of conditions.
Tension between authorities and deputies
The situation is complicated by political disagreements. Some deputies do not support the proposed changes, despite pressure from the authorities.
President Volodymyr Zelenskyy sharply reacted to the delays: "If you do not serve the state in parliament, then serve the state on the front line."
Why this is critical
The delays are taking place against the backdrop of financial risks – Ukraine may face a shortage of funds in the coming months. The situation is also complicated by the blocking of some EU aid.
In case of lack of funding, the government may resort to direct financing through the National Bank, as it already happened at the beginning of the full-scale war.
The IMF plans to hold talks with Ukrainian deputies in the near future to unblock the decision-making process.