IMF beacons and the paralysis of the Rada: how the parliamentary crisis affects pension payments

Ukraine has effectively found itself in a state of parliamentary crisis, which directly affects the fulfillment of obligations to international creditors. The delay in voting for the IMF “beacons” puts the social sphere, including pension payments, under threat.

This was reported on the air of the “Pryamiy” TV channel by Ivan Us, Candidate of Economic Sciences and Associate Expert of Visergrad Insight.

According to him, MPs are reluctant to support the bills necessary to receive the next tranches from the IMF, in particular due to fear of reputational damage from tax increases. The government is currently trying to find a compromise with the Verkhovna Rada to avoid financial collapse.

Since all domestic state revenues are directed to defense, social spending is completely dependent on assistance from partners, so if deputies do not take responsibility for unpopular decisions, the budget risks being left without funds to pay the population, the economist explains.

“If there is no loan from the IMF, there will be neither this money nor other money, accordingly, we risk having pension debts to our citizens,” Ivan Us warned.

At the same time, he added that the Cabinet of Ministers should more clearly communicate the risks of not voting to both parliamentarians and citizens. The situation is complicated by the fact that the IMF is a key indicator for other donors, including the European Union, so the lack of progress in reforms and changes to tax legislation may block all channels of external financing, which will force the authorities to take even more radical steps in the economy, the studio guest emphasizes.

As is known, the parliamentary coalition faced serious difficulties in passing government bills. The Verkhovna Rada effectively stopped supporting the initiatives of the Cabinet of Ministers of Ukraine, as evidenced in particular by the failure of the vote on the bank profit tax.

In addition, the crisis in the Ukrainian parliament is deepening due to ambiguous statements by the state’s top leadership regarding sending to the front those deputies who plan to resign early. Such rhetoric has sparked a wave of discussions about the legality and ethics of such steps within the walls of the Verkhovna Rada.

Moreover, attempts to put pressure on the parliament only exacerbate the political crisis within Ukraine, so it is worth avoiding brazen communication from the leadership , which can undermine stability in a difficult period, and there is also no need to turn the Armed Forces of Ukraine into a kind of horror story for people’s deputies, – said on the air of “Pryamoy” participant of the Russian-Ukrainian war Oleksiy Petrov.

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