Exclusive: IMF sees big risks in Ukraine 2018 budget – country head

By Alessandra Prentice

KIEV (Reuters) – The International Monetary Fund sees considerable risks both on the revenue and expenditure side of Ukraine’s 2018 budget though it agrees with the government’s deficit target of around 2.5 percent of GDP, the IMF country head told Reuters on Friday.

Keeping its budget in line with IMF recommendations is one of Ukraine’s commitments under a $17.5 billion aid program, although slow progress with promised reforms has repeatedly delayed the disbursement of the latest tranche of loans.

Parliament approved on Dec. 7 a draft budget for 2018 that the government said was in line with its fiscal commitments to the IMF, although the Fund did not immediately release its evaluation.

In the IMF’s first public comments on the budget since it was passed, the country head Gosta Ljungman said the IMF was still assessing the bill and amendments to the tax code, but that it had concerns.

“Overall, while we agree with the budget deficit target for next year, we see considerable risks both on the revenue and spending sides,” he said.

He said the IMF expected to continue talks with the government in the coming days to agree whether additional measures are needed to ensure the budget is in line with the program.

(writing by Matthias Williams; editing by Richard Balmforth) OLUSECON Reuters US Online Report Economy 20171215T145627+0000

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