The International Monetary Fund has postponed a mission to Ukraine to unfreeze a $15 billion program from late August to October, Special Advisor to the IMF Managing Director David Lipton said on Thursday, in response to Kiev delaying an increase in the retirement age.
"On Tuesday, I met with ministers Yaroshenko and Boyko, and Deputy Governor Sorkin, in Washington. We discussed recent economic developments in Ukraine and abroad, and progress under the Stand-By Arrangement (SBA)," Lipton was quoted as saying in a statement on the IMF website.
"I stressed the importance of strong policies and reforms to overcome delays and complete the second review. The authorities reaffirmed their commitment to the objectives of the SBA program and the implementation of pending measures. The next Fund mission to Kiev is now scheduled for late October," Lipton said.
The IMF launched its program for Ukraine last summer but froze it later because of Kiev's refusal to implement unpopular austerity measures such as cutting the budget deficit, raising the retirement age and lifting household gas prices by 50 percent.
Ukraine is now on track to meet the full-year deficit target of 35.5 billion hryvnias ($4.4 billion) agreed with the IMF. Gas prices were hiked last August but plans to increase the pension age to 62 from 60 for men and to 60 from 55 to women were met with demonstrations.
In July, parliament passed the pension reform bill but later parliament speaker Vladimir Litvin said it would not become valid from September as expected for "technical reasons."
Kiev received two tranches of more than $3.4 billion each from the IMF and expected to get another one in September.
Deputy Prime Minister Serhiy Tihipko has warned that without the IMF loan Ukraine may face a Greek-style crisis.
