The International Monetary Fund (IMF) has reached an agreement with the Ukrainian government on the disbursement of a new loan tranche. The amount of financial assistance will be nearly $700 million. This decision was the result of several weeks of intense negotiations held during the Fund's recent mission in Kyiv.
Agreement status and next steps
At the moment, the agreement has been reached at the level of IMF staff and representatives of the Ukrainian side. However, final approval and the actual transfer of funds require the endorsement of the Fund's Executive Board. The meeting where the final decision will be made is scheduled for next month.
The next round of negotiations between Ukraine and the international lender will take place no earlier than September. Experts note that the review of the cooperation program is one of the most difficult in recent times.
Key issue: taxes on parcels
The central point of the discussions was the draft law on the taxation of international parcels costing over €45. The introduction of this mechanism is necessary to meet the IMF's requirements for reducing the share of the shadow economy in the country.
During the discussions, the Fund made concessions: the adoption of the relevant law can be postponed until July. This decision will give Ukrainian parliamentarians additional time to implement this condition.
Political context and obstacles
The issue of parcel taxation has already become a stumbling block. On May 26, the Verkhovna Rada did not support draft law No. 12360 and rejected amendments concerning taxes on international shipments. Deputies also did not approve the proposal to resubmit the document for a second reading.
The vote took place against the backdrop of the start of the IMF mission in Kyiv. People's Deputy Yaroslav Zheleznyak explained that due to the failed vote, the Cabinet of Ministers would have to submit a separate draft law to the parliament to resolve this issue.