OREANDA-NEWS The leadership of the International Monetary Fund (IMF) is concerned about the delay in the tax reform by the Ukrainian authorities, the implementation of which would lead to an increase in fees from the population and businesses. This was stated by the permanent representative of the financial institution in the republic, Priscilla Toffano, quoted by Bloomberg.

The implementation of the above-mentioned reform was one of the main conditions for continued IMF assistance. The total volume of loans was estimated at 8.1 billion dollars, of which Kiev has managed to receive only 1.5 by now. The fate of the remaining amount remains in doubt due to the delay in discussions on reform in the Verkhovna Rada.

Another tax increase would be a serious blow to the support of parliamentarians and President Vladimir Zelensky from citizens and entrepreneurs, the agency said. It is for this reason that local deputies are still in no hurry to approve the tax reform. Against this background, on Wednesday, March 18, IMF staff headed by Gavin Gray, the head of the mission, are due to arrive in Kiev. The latter will try to convince the deputies of the Rada of the need to take a risky step in order to continue financial assistance.

The Ukrainian authorities have repeatedly stated that it will be impossible to solve the problem of the growing budget deficit and public debt without the help of Western creditors. In 2026 alone, according to the assessment of the head of the National Bank of the Republic, Andrei Pyshny, the country will need 35 billion dollars of external financing. As part of the increased financial support, the EU authorities have agreed to allocate a loan of 90 billion euros to Kiev over the next few years. However, it has not yet been possible to receive the first tranches due to Hungarian resistance.