IMF demands Ukraine launch agri-land market, Groysman says

The IMF’s key demands in its latest memorandum with Ukraine involve pension reforms and launching an agricultural land market, Prime Minister Volodymyr Groysman said on March 7, according to the UNIAN news agency. Recall, the IMF reported on March 4 that it reached agreement with Ukraine on its third review of the USD 17.5 extended funds facility (EFF) program, enabling the approval of a fourth loan tranche of USD 1 bln. The executive board is expected to approve the tranche in the second half of March.

Alexander Paraschiy: Among the IMF’s “To Do” list in its September memorandum, launching an agri-land market was the most realistic target, compared to strengthening social payment targeting and pension reform. Previously, Finance Minister Alex Danylyuk had mentioned that a law on creating a market will be submitted to parliament by the end of May. However, we expect fierce opposition from Ukraine’s populist parties in parliament, posssibly enough to derail any measure. Ukraine’s business community supports the launch of the market, which will offer a much-needed boost to the economy. Ukraine is among the few countries in the world without a freely operating agri-land market.