The International Monetary Fund, in addition to higher gas prices for households and heating companies, demands that Ukraine recalculate the 2012 budget on the basis of the GDP growth forecast of 4% instead of the current 5%, UKRINFORM reported citing Kommersant Ukraine.

"The IMF demands that Kyiv recalculate the budget for 2012 based on a realistic projection of GDP growth of 4%, which would require cutting back its revenues or expenditures by 3 billion UAH (USD 1 - UAH 7.98). In addition, it is proposed to levy a tax of 19% on the middle class," the publication says.

As Kommersant learned from a source familiar with the negotiations, during the visit of its mission to Kyiv from October 25 to November 3, the IMF also insisted on one-stage increase in gas tariffs for households by 30% and for heating companies by 60%. "The International Monetary Fund would agree to a gradual increase in the tariffs. But the Cabinet of Ministers relies on a successful outcome of the gas talks with Russia, so at this point a correction of the rates is undesirable," he said.

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