IMF rejects Poroshenko’s legislation to create anti-corruption court

The IMF doesn’t support the president’s legislation
submitted to parliament to create the High Anti-Corruption Court because it
violates Ukraine’s obligations to its international partners, IMF Mission to
Ukraine Head Ron van Rooden wrote in a letter dated Jan. 11. The letter was
directed to the Presidential Administration head and top officials and was published by the eurointegration.com.ua news site
on Jan. 15. The president’s bill “was expected to be a positive step” towards
reforms, the letter said. However, IMF officials have “serious concerns” given
that “several provisions are not consistent with the authorities’ commitments
under Ukraine’s IMF-sponsored program and the recommendations of the Venice
Commission of the Council of Europe,” the letter said.

Among them, provisions related to the selection
process, eligibility requirements, and security are not conducive” to the
court’s independence and the transparent appointment of judges. The IMF stands
ready to assist the Presidential Administration in revising the bill in line
with MF commitment and Venice Commission recommendations, the letter said.

Following the letter’s publication, Finance Ministry Oleksandr
Danylyuk said the IMF expects amendments to the legislation before its approval
in the second reading. During his meetings in Washington last week, “the IMF
made several proposals to the corresponding bill and expects that they will be
reviewed and considered by parliament in the document’s preparation for its
second reading,” Danylyuk said through his press service, as reported by the
Interfax-Ukraine news agency.

Zenon Zawada: The
Presidential Administration is eager to get its bill approved in the first
reading, which would make the other submitted drafts less relevant and less
likely to be approved. We expect a long process of getting the final draft
approved, which will have to be some kind of a compromise between IMF demands
and the goals of Ukraine’s ruling elite.

We expect the legislation to create the court will
be approved in the coming months. Poroshenko’s failure to do so will be a
valuable argument for his rivals in the presidential elections, scheduled for March
2019. More importantly, it’s a key requirement to secure the next IMF loan
tranche this year, which is vital for Ukraine.