The Ukrainians “will pay” for the IMF loan

To get a loan from the IMF in the amount of $ 5 billion Ukraine will raise the retirement age and introduce a system of funded pensions.

Чем украинцы «заплатят» за кредит МВФ

This writes Strenia.

According to the Memorandum, the IMF, Ukraine needs to continue the implementation of the pension reform, which was initiated in 2017. The reform envisages the introduction of “incentives for longer work,” that is, raising the age for retirement.

Also in the agreement with the IMF stated that the Ukrainian authorities will not introduce changes that will reduce the retirement age.

Instead, they promise in the medium term to equate the minimum pension to the subsistence level and to conduct annual indexation.

The Memorandum also stated that Ukraine will introduce a funded pension system, which will develop jointly with foreign partners. Now comes the preparation of two bills on funded pension for all and only for privileged categories of pensioners.

In addition, in cooperation with the World Bank Ukraine plans to combine the programs in one database and tie the payments to a “minimum income”.