According to the agreements reached between the Ukrainian government and the International Monetary Fund (IMF), which are confirmed by the memorandum of economic and financial policies, it has been decided to reduce the figures of the deficit of the sector of nationwide administration in 2010 to 5.5% of GDP, the Ukrainian Finance Ministry reported, according to UKRINFORM.

One of the measures in support of the memorandum's implementation is to balance local budgets in 2010.

"In this regard, local budgets for the corresponding fiscal period should be fulfilled without any deficit, and any changes in the decision on local budgets in terms of executing borrowings to the budget of development will lead to the violations by Ukraine of the requirements of the memorandum," the ministry said.

Taking this into account, the ministry noted that the local debt of cities and towns in 2010 should not grow, while the revenues and expenditures of local budgets should form a common balance.

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