Finance Minister Fedir Yaroshenko does not establish linkage between raising the retirement age and the requirements of the International Monetary Fund, he was speaking in parliament Friday during an hour of questions to the Cabinet of Ministers, an UKRINFORM correspondent reported.
"In Ukraine, the pension system has undergone minimal changes. Transformations, which we have just started today, the developed countries have experienced long ago," Yaroshenko said adding that now the needs of the pension system in Ukraine take more than 18% of GDP.

"This rate is the highest in the world. So, we really need reforms that would balance the whole system. And the reforms that we need today, they are not needed for the IMF, but they are needed for our economy to develop and on the basis of economic growth to improve the welfare of the people," the minister underscored.

Yaroshenko also said that by the end of 2011 Ukraine will fully switch to automatic refund of the value added tax (VAT).

"In 2010, the Cabinet resolved legislatively an automatic VAT refund, so that this problem has disappeared," the minister noted.

According to Yaroshenko, as of June 1, 2011 the Ukrainian enterprises have already been returned UAH 16.7 billion.

"We have assumed an automatic refund. No country still does it in full. In our country 50 to 70% of VAT is refunded to companies automatically," the official emphasized.

He also has expressed confidence that Ukraine will receive the next tranche from the International Monetary Fund on time.

"As referred to the International Monetary Fund, we continue the constructive work with it. Various consultations and cooperation are in progress, which no one has suspended," Yaroshenko stressed.

According to the minister, there is every reason to believe that disbursements from the IMF will be provided to Ukraine on time.

As UKRINFORM reported Prime Minister Mykola Azarov had earlier said that Ukraine was in talks with the IMF proceeding from the interests the Ukrainian people. Earlier, President Viktor Yanukovych said that Ukraine intends to continue cooperation with the IMF.

On May 16 the head of the IMF in Ukraine Max Alier stressed that Ukraine should launch pension reform and increase gas tariffs for households to receive another disbursement of the IMF.
Last July the IMF agreed to reengage with Ukraine offering a new stand-by arrangement, which provides for the allocation of USD 15.6 billion. Then Kyiv received the first tranche, and the second in December last year after the first revision of the program. Their total was USD 3.4 billion.

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