The ambassador of Russia called the IMF requirements unacceptable
The ambassador of Russia in Ukraine Mikhail Zurabov considers the requirements of the International Monetary Fund of raising the prices for the housing and communal services in Ukraine unacceptable.
"Ukraine as of today is completely right to consider that the cooperation with the IMF can be renewed. However, as we can see, the cooperation with the IMF will be connected with several unpopular decisions required from Ukraine, which is in my opinion absolutely unacceptable," said Zurabov.
He has also mentioned that the Ukrainian economy is experiencing stagnation.
As a result of fulfilling new IMF conditions 40 percent of Ukrainians will become underprovided. The IMF advises to discharge some of the state employees and to decrease the salary of teachers and doctors.
"It is necessary to ensure ambitious fiscal consolidation in order to decrease large requirements of the budget for financing … by limiting the wage fund and the number of employees in the budget sector, decreasing the subsidies, and regulating the expenses for purchasing goods and services," wrote the head of the IMF mission Nikolay Georgiev in his statement.
According to the statement, decreasing the tax rates has to be postponed until the time when the budget deficit is decreased to stable acceptable level.
The decision to accept the IMF requirements was made during special meeting with the president of Ukraine Viktor Yanukovych. The head of the state has agreed to increase the gas tariffs for the population to 60 percent. However, it is expected that the increase will be applied only to those, who consume more than 3.5 cubic meters of gas per annum. The corresponding tariff scale has already been prepared by the national commission on energy regulation.
Formerly unshakable position of the Ukrainian government in relation to maintaining the exchange rate is also ready for adjustment in accord with the IMF requirements. It is reported that Yanukovych has approved a long awaited widening of the exchange rate corridor of hryvna to dollar: its upper limit was set to 8.5 hrn. for dollar.