IMF wants Ukraine to amend anti-corruption bill, pension law

The IMF wants Ukrainian authorities to amend the
president’s submitted bill creating an independent anti-corruption court to
account for the concerns of IMF staff, spokesman Gerry Rice told a press
briefing on Jan. 18. The concerns were listed in a letter to Ukrainian power brokers
last week that was made public on Jan. 15. “Given its macroeconomic
implications, the establishment of the anti-corruption court, consistent with
the Venice Commission’s recommendations, has been an essential part of the
program,” Rice said.

He also said that “a bit more work needs to be done”
on reforming Ukraine’s pension system, pointing out that the legislation adopted in October
has shortcomings that include undermining incentives for people to work longer
and “does not fully ensure a fair and sustainable pension system.”

Iryna Lutsenko, the president’s representative in
parliament, wrote in her blog on Jan. 18 that the draft law on the
anti-corruption court will be amended for the second reading to account for the
recommendations of the Venice Commission and the IMF.

Alexander Paraschiy: It’s a bit
surprising to hear that the IMF is not satisfied with Ukraine’s recently
adopted pension system adjustments, but we believe further revisions won’t be
part of the upcoming review of the IMF’s program for Ukraine. At the same time,
it is very unlikely that the IMF will compromise on its vision of an
independent anti-corruption court, without which Ukraine’s system of fighting
corruption won’t work smoothly.

So far, we see chances are a bit higher than 50% that
the anti-corruption court law will be adopted in line with IFI recommendations
this year, and accordingly Ukraine’s chances to get more loans from its Western
partners. We view yesterday’s decision by parliament to exclude the president’s
legislation to create the court from the agenda as a sign that a compromise is
still in the works in negotiations with the IMF.