Rada corrects IMF-mandated pension reform, paving way for presidential signature

Ukraine’s parliament, the Verkhovna Rada, amended an IMF-mandated pension reform package yesterday in its first fall session, according to the Rada website, paving the way for President Viktor Yanukovych to sign it into law. Though the Rada approved pension reform before its summer recess back on July 8, the legislation has been in limbo due to technical inconsistencies unnoticed until later. Brad Wells: In addition to raising gas tariffs for households, the pension reform is one of the International Monetary Fund’s key demands before renewing Ukraine’s USD 16 bln loan program. Key provisions of the legislation are that it lowers the maximum pension limit, increases the retirement age over 10 years for men to 62 and women to 60, and adds 10 years to the pension qualification period. Parliament also voted yesterday to delay the date when the pension reform would take effect from the now unrealistic September 1 to October 1. Last month, Ukraine reportedly asked for an IMF mission visit to review its program to be postponed until October to give it more time to implement necessary reforms. Swift action on the pension piece is a positive development, but so far the government has been reluctant to budge on unpopular gas tariff increases.