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Archive for August 9th, 2010

1.25 billion will be made available for Ukraine within cooperation with IMF

Posted by the Editor on August 9, 2010


News / 9 August 2010 | 14:46

1.25 billion will be made available for Ukraine within cooperation with IMF

1.25 billion will be made available for Ukraine within cooperation with IMF

The International Monetary Fund (IMF) will conduct the first review of the implementation of its program of cooperation with Ukraine on November 30, 2010, reads a memorandum of cooperation posted on the fund’s official website.

Depending on the results of quarterly reports (compiled from November 2010), Ukraine will receive access to the following nine tranches in a total amount of SDR 8.75 billion, with SDR 1 billion receiving each on November 30, 2010, March 15, 2011, June 15, 2011, September 15, 2011, December 15, 2011, March 15, 2012, June 15, 2012, September 15, 2012, and the ninth tranche of SDR 750 million on December 15, 2012.

The money will be available upon the Board’s approval of the arrangement. IMF also voiced the prior actions for Ukraine within the framework of the tranches, which are:

– to enact a supplementary budget with fiscal measures of UAH 16 billion and consistent with a 5.5 percent of GDP deficit for the general government in 2010 and the commitments in the MEFP;
– to increase gas tariffs for all households and utility companies by 50 percent (effective August 1, with the coming billing cycle);
– enact amendments to the NBU law in line with IMF recommendations;
– amend NBU Resolution 47 (to strengthen the emergency liquidity assistance framework and eliminate the possibility of NBU lending to the private sector) in line with IMF recommendations;
– adopt legislation transferring the authority for setting heating tariffs for communal utilities to a new
independent regulator.

As reported, on July 29, 2010, the IMF approved the allocation to Ukraine of a loan of USD 15.15 billion required to reduce the budget deficit at the expense of painful economic reforms. The loan exceeds by over seven times Ukraine’s quota calculated on the basis of countries’ contributions to the fund’s budget. The IMF agrees quite rarely to such loans.

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Government to increase pension age for women

Posted by the Editor on August 9, 2010


News / 9 August 2010 | 12:52

Government to increase pension age for women

Government to increase pension age for women

Ukraine plans to reform the pension system with the objective of putting it on a sound financial footing, including through a gradual increase in the pension age for women from 55 to 60 years, by adding six months every year starting in 2010 with the aim of equalizing the pension age for all workers.

This is stipulated in a memorandum signed by Ukrainian authorities and the International Monetary Fund (IMF) as a part of the resumption of credit cooperation in the middle of July 2010, Interfax-Ukraine reported.

According to the document, a draft law that foresees the said pension age increase is to be submitted by late September 2010 so that it can come into force by the end of 2010.

According to the memo, the reform would foresee an increase of 10 years in the qualification period for receiving full pension benefits and as increase in the minimum required insurance period from five to 15 years. This measure will motivate workers to stay in the work force, improving the balance of the Pension Fund by UAH 2 billion in 2011.

The reform is a structural benchmark of the program on cooperation with the IMF.

In addition, the Ukrainian authorities “will enact by end-December 2010 changes to the basis for calculating the additional 1% pension benefits accrued for each year of service above 20/25 for women/men,” says the memo.

This measure is expected to reduce pension fund expenditure by UAH 6.2 billion in 2011.

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High fire risk remains in Ukraine, Kyiv blanketed by smoke

Posted by the Editor on August 9, 2010


News / 9 August 2010 | 11:03

High fire risk remains in Ukraine, Kyiv blanketed by smoke

High fire risk remains in Ukraine, Kyiv blanketed by smoke

High fire risk will remain in large parts of  Ukraine, except in its western regions, due to dry weather and heat wave with daytime temperatures reaching as high as 35-39 degrees Celsius, the Ukrainian Emergencies Ministry’s weather forecasting center reported.

In particular, the issue concerns the country’s southern and eastern regions, as well as Poltava, Dnipropetrovsk, Sumy, Chernihiv, Kirovohrad, Cherkasy regions and the steppe part of Crimea, where temperatures will hit 40-42 degrees Celsius in some places.

On Monday morning, Kyiv was blanketed by smoke with a smell of burning.

The Ukrainian Emergencies Ministry declined to name the cause of smoke, but did not exclude that it had been caused by forest and peat fires in the Moscow region.

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