Ukraine needs to cut budget spending – Fitch

Украина должна сократить расходы бюджета - Fitch

State budget revenues grew, but the deficit level is still not reached the figure of 2.5% of GDP. In this regard, the country will have to cut spending.

Ukraine has decided two important questions included in the program of cooperation with the IMF. We are talking about potential changes to the state budget 2018 and the adjustment of gas tariffs for the population. This is stated in the press release of the rating Agency Fitch Ratings, announced on Tuesday, August 14, Word and Deed.

“In the second quarter of 2018, the profitability indicators of the state budget has improved, but will probably need a revision of the level of spending to achieve the deficit target,” – noted analysts of the Agency.

In particular, the Agency reminds that in July, the Ukrainian government another month left unchanged gas prices for the population, and at the moment negotiations with the IMF on the formula, tariffs are still ongoing.

In “complications in the negotiations for political reasons”, given that the approaching heating season and in the coming 2019 elections, said Fitch.

As previously reported, the International monetary Fund mission will visit Ukraine in the period 6 to 19 September.

During the visit, she will discuss next steps, “including financial assistance from the IMF to support policies aimed at maintaining macroeconomic stability and ensure economic development towards sustainable and inclusive growth”.

Last week it was reported that Ukraine agreed with the IMF on the allocation of the next tranche. The money can be allocated in September.

 

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