Kiev and the international monetary Fund (IMF) has almost agreed a new edition of the Memorandum for allocation of loan to Ukraine at $ 1 billion. Conditions are assumed to be extremely tough.
Housing and communal services will rise in price again
One of the requirements of Fund — raising from April 1 the price of gas of the Ukrainian production to the price level of imported gas. This will lead to increase of tariffs for gas for the population. Experts estimate that from the current 6.8-6.9 thousand UAH. for 1,000 cubic meters tariffs will rise to 10-11 thousand UAH. In practice, this means that the figures in the coming Ukrainians the payment for heat and gas will increase markedly: from 2-4 thousand UAH 3.5-6.5 thousand. And this is the average salary in the country is 7.8 per thousand.
“Soon breathing will be in credit”. What Ukrainians think about the price of “communal”
In General, as reported by the state statistics Committee, Ukrainians on January 1, 2017, owed for utilities around 23.4 billion hryvnia — is 857 million dollars.
“This debt is a record,” — said Alexander Okhrimenko, President of Ukrainian analytical center. Housing prices exceed the capacity of the population and the state 3 times. “There is a law that you should not pay more than 10% of earnings for all utilities. Official salary in Ukraine — 4700 hryvnia ($172.) after taxes, therefore, the maximum possible amount in the payment — 470 UAH”, — said Okhrimenko.
Monetization of subsidies
However, the IMF don’t think so. Moreover, insist that the population was cancelled installment payment for housing and communal services and introduced the monetization of the subsidy from 1 February 2017. Monetization is stated by the President Petro Poroshenko: this model means that incentives and subsidies are issued to people in the money, but they pay the full amount, such as for utility services or public transportation. As practice shows, the government is trying to understate the amount of aid compared to the actual consumption of preferential services.
Moreover, earlier, the Ukrainian Minister of social policy Andrei Reva said that if the subsidies and monetize, the money still will not. According to Reva, in the context of negotiations with the IMF we are talking about the state transition to monetary settlements with companies that provide utility services.
25 years to Romania. The IMF said, where is the Ukrainian economy
However, the most painful point of the Memorandum is pension reform. The IMF said Andrey Reva insists on raising the retirement age for Ukrainians.
“In Ukraine, 11 million pensioners and 26 million potential taxpayers. And only pay 10.5 million”, — said the Minister. “Ukrainian news” writes that the IMF allegedly took this question. However, it is possible that instead of the age may increase pensionable service up to 35 years, which will be deprived of the right to retire a significant number of Ukrainians, especially those who have worked for years without official registration.
“The saddest thing in the proposed measures is the increase of insurance. 35 years is a lot, and in 2036, the majority of people would not be able to show this experience. So, a vast number of people will not receive a retirement pension, and social, which is half of the minimum, — said Okhrimenko.
In addition, the pension reform in Ukraine will include the abolition of the solidarity pension system and all without exception of special pensions.
The plant — box. What saves the Ukrainian economy from collapse?
State employees fired, land — sell?
Ukrainian media reported that the government and the IMF also agreed on a number of points to obtain a loan. In particular, failed to avoid the obligation to cancel the moratorium on sale of agricultural land. The legislative base for the turnover of land and the lifting of the moratorium on its sale must be accepted until April 1. So the famous Ukrainian black earth, which, as argued in Kiev during the “divorce” with Russia in 1991, “fed the entire Soviet Union,” still to be auctioned…
“Chomu not give us pennies?” What ordinary Ukrainians think about the IMF loans
Well, another unpleasant for state employees and civil servants a condition of allocation of the next tranche they will cut in the current year. However, the percentage reduction in the IMF Memorandum spelled out, although previously, the Fund offered to reduce the number of state employees by 4%, geloasa by 5% in 2017, and until the completion of the programme of cooperation, that is, until 2019, to increase the reduction to 10%.
The most striking thing that all these sacrifices of ordinary Ukrainians will be actually in vain . In 2017, Ukraine has to pay the IMF about $ 1 billion, while the amount of the fourth tranche, which is expected to receive from the Fund … also $ 1 billion. Executive Director of the International Bleyzer Foundation Oleg Ustenko said that in this way, a loan from the IMF may mean that money will just be shifted from pocket to pocket.