JohninMK Mon Feb 08, 2016 11:25 pm
IMF and therefore its master the US, seems to be continuing down the 'WTF are we doing in Ukraine?' path. This is out in the open in the press, not a nod and a wink in backrooms, so it is pretty serious stuff. Perhaps they have decided that they underestimated the risks in plundering and it is going to be just too difficult.
WASHINGTON (Sputnik) — The government of Ukraine could face revenue shortage in 2016, if it fails to address reductions in social security contributions, the International Monetary Fund (IMF) said in a report on Monday. "Social Security Contributions (SSC) in Ukraine need urgent attention," the report stated. "If nothing is done, the budget is poised to lose 4.5 percent of GDP in revenues in 2016 due to a legally mandated SSC rate reduction adopted in March 2015."
The IMF argued that Ukraine has no fiscal space to omit tax revenues. "The possibility of financing social security entirely from the budget should only be considered in the context of a simultaneous and comprehensive review of the benefits that the system should deliver," the report stated.
The Fund said it endorses lowering SSC rates, but underscored that it should be done more moderately than currently suggested. In December, the Ukrainian parliament, Verkhovna Rada, adopted the state budget for 2016 with a deficit of 3.7 percent of GDP.
Read more: http://sputniknews.com/europe/20160208/1034424438/ukraine-could-lose-revenue.html#ixzz3zcLGrMmw
WASHINGTON (Sputnik) — The Ukrainian Space Agency potentially lost about 80 percent of its revenue in 2014 after contracts cancellation by Russia, the International Monetary Fund (IMF) said in a report on Monday. "Additional losses [of state companies] could stem from… contract cancellation by Russian clients in the space and military industry (potentially 80 percent of revenue for companies managed by the State Space Agency or UAH [Ukrainian Hryvnia] 2 billion per year)," the report stated.
In June 2015, Ukraine's President Petro Poroshenko halted all military sales to Russia. In February 2015, the Russian government announced the decision to cancel contracts for Ukraine's Zenit rockets used for satellite launches.
Read more: http://sputniknews.com/europe/20160209/1034425954/ukraine-space-sector-lost-revenue.html#ixzz3zcLXKpDM
WASHINGTON (Sputnik) — Many Ukrainian regulatory bodies force local businesses to pay bribes to continue operations, the International Monetary Fund (IMF) said in a report on Monday. "Businesses report high levels of corruption, with regular "inspections" by various regulatory bodies requiring bribes to continue operations," the report stated.
The IMF argued that the existing Ukrainian corporate legal code is overcomplicated and internally contradictory. These complications provide "state authorities with significant latitude in determining when and how to apply it," the report explained. In addition, the IMF stressed "widely reported" concerns of taxpayer harassment.
On Wednesday, Ukraine’s Economic Development Minister Aivaras Abromavicius announced his plans to resign because he was unable to work effectively. In his resignation letter, the minister named corruption and political pressure as reasons for the decision. IMF Managing Director Christine Lagarde said on Thursday that Abromavicius’s claims about corruption could indicate failure of reforms, introduced by the Ukrainian government.
Read more: http://sputniknews.com/europe/20160208/1034424614/ukrainian-business-continue-suffer-from-corruption.html#ixzz3zcLpC59h