Fitch say that Ukraine will have to cut budget spending

Major pending issues, which left Ukraine in the framework of a cooperation program with the International monetary Fund (IMF), are potential changes to the state budget-2018 to achieve the level of deficit 2.5% of GDP and the adjustment in gas tariffs for the population.

В Fitch говорят, что Украине придется урезать расходы госбюджета

This is stated in the press release of the rating Agency Fitch Ratings.

“In the second quarter of 2018, the profitability indicators of the state budget has improved, but will probably need a revision of the level of spending to achieve the deficit target,” – noted analysts of the Agency.

In particular, Fitch reminds that in July, the Ukrainian government another month left unchanged gas prices for the population, and at the moment negotiations with the IMF on the formula, tariffs are still ongoing.

In “complications in the negotiations for political reasons”, given the approaching heating season and in the coming 2019 elections, said Fitch.

Note that in mid-June, acting Minister of Finance Oksana Markarova, immediately after his appointment as Minister of Finance, declared that the sequestration of the budget (reduction of expenses – ed.) in Ukraine this year will not need.

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