Director of the European Bank for Reconstruction and Development in Ukraine Andre Kuusvek said that the Bank believes the current tariffs for housing and communal services in Ukraine are too low and advises against "subsidies for all" under such low tariffs.
Speaking at the meeting of the Committee on Economic Reforms, he said that mechanisms for subsidies for the population in the housing and communal sector, as well as in the gas industry should be improved and that there is the need to focus on providing targeted assistance to the poor.
According to him, the housing and communal services tariffs should reflect their real cost, otherwise it is impossible to develop housing and communal services and gas industry.
The International Monetary Fund also requires raising electricity tariffs for the population to the actual level. It is one of the IMF conditions of granting Ukraine the next tranche of the loan, approved in 2010. That year Ukraine received the first two tranches of the loan, but then the IMF froze originating resources due to the failure to meet obligations, in particular, the increase in gas and heat supply tariffs for the population.
At the end of the month, IMF technical mission is to arrive in Ukraine to hold talks.
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