IMF expects reduction in Ukraine's pension fund deficit, increase in pensions

This is stated in the IMF's analytical report on the new Stand-By Arrangement (SBA) for Ukraine and the cancellation of arrangement under the Extended Fund Facility (EFF), the text of which was obtained by Ukrinform.

"Pensions will be raised in line with the indexation rules of the new pension law, adopted in 2017. Pension benefits will on average increase by 8.5 percent, while retirees whose pensions equal the subsistence minimum will see a 9.5percent increase," the IMF said.

According to the report, with the implementation of the new pension law at the start of 2018, pension spending is projected to fall slightly in 2019, to just over 10% of GDP, while the pension fund deficit is projected to decline to 4.25% of GDP in 2019, compared to a deficit of over 6% of GDP in 2016.

At the same time, the IMF emphasized the importance of pension reform for Ukraine due to unfavorable demographic trends, taking into account low fertility and an ageing population, and a migration abroad of a growing number of workers.

Later, IMF experts expect that Ukraine will be able to reduce the pension fund deficit to about 3% of GDP.