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The Pension Reform Will Take Place, As IMF Requests

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The Cabinet of Ministers brought in the bills on medical and pension reforms to the Verkhovna Rada (both considered in the first reading and even voted).

Moreover, the Cabinet of Ministers is working on a draft law on land reform. CASE Ukraine`s Executive Director Dmytro Boyarchuk commented on future changes to the ‘Dengi.UA’ media outlet.

The pension reform will be carried out because it is an IMF`s requirement. In addition, this is an attempt to reduce the Pension Fund deficit. However, the problem of the deficit is not resolved by an increase or decrease in the retirement age and an increase or decrease in the base of citizens who are charged with social payments. This solution lies in a different zone and has a long-term nature – by creating conditions for labor legalization.

Medicine reform is the first, critically correct step. He does not complete it but binds funding for the services provided. Land reform, I think, should be held in the form, which Prime Minister Groisman offers, with the prospect of lifting some restrictions. Legal persons must have the right to sell-buy the land because, in fact, we now have a shadow land market.

If we remove the moratorium (with restrictions for large companies), then we will get the shadow market again, only in another hypostasis. Of course, we may let the two privileged years, when small farmers will be able to buy this land. But it is important for agribusinesses to understand what their status will be. They should not be afraid of numerous restrictions.

September 15, 2017