Ukraine and the IMF has agreed on the basic provisions of the Memorandum on Economic and Financial Policies. According to the updated Memorandum, Ukraine has to implement a series of reforms, Minister of Finance of Ukraine Oleksandr Danyliuk has said.
Primarily, these obligations relate to the land reform. Thus, although there is no land market in Ukraine de jure, transactions are carried out through the shady schemes. Opacity of these processes significantly hampers the development of the agricultural sector. Disclosure of the land market is one of the IMF requirements.
Moreover, the Memorandum requires to conduct the large-scale pension reform, which has to balance the Pension Fund and to make charges transparent and fair. The Minister noted that to implement this reform, the Government should solve the problem of deficit of the Pension Fund first.
The reform of state-owned banks is also required by the IMF. Currently, 55% of banks in Ukraine are public. This situation and non-transparent activity of the state banks make the economic situation in Ukraine worse and distort the the financial market competition.
The new Memorandum contains the policy and the strategies, which have to be followed by Ukraine in 2017-2018.