The International Monetary Fund (IMF) has approved a new loan tranche for Ukraine, amounting to nearly $700 million. This agreement has been reached at the staff level between the Ukrainian government and IMF representatives, but it still requires approval from the fund’s board of directors, which is expected to convene next month.
The consensus was achieved following several weeks of challenging negotiations during a recent IMF mission in Kyiv. A significant point of contention during these discussions was a proposed tax bill aimed at taxing international parcels valued over 45 euros, a measure intended to reduce the size of Ukraine’s shadow economy.
Sources indicate that the IMF has agreed to postpone the implementation of this tax law until July, providing Ukrainian lawmakers additional time to meet this requirement. The next round of negotiations between Ukraine and the IMF will not occur until at least September.
It is worth noting that on May 26, the Ukrainian Parliament rejected bill No. 12360, which included amendments concerning the taxation of international parcels. Additionally, lawmakers did not approve a proposal to send the document back for a second reading.
As explained by MP Yaroslav Zheleznyak, the Cabinet of Ministers will now need to introduce a separate legislative proposal to address this issue. The vote took place amid the ongoing work of the IMF mission in Kyiv, which is considered one of the most complex reviews of Ukraine’s cooperation program with the fund. Among the key requirements is the implementation of taxation on all international parcels.
The IMF has approved a $700 million loan for Ukraine, contingent on future tax legislation. The agreement comes after extensive negotiations and highlights ongoing fiscal challenges.