QUESTIONER: This week Ukrainian media published a letter from the IMF Europe and Department to the Presidential Administration of Ukraine regarding an establishment of credible and independent on the corruption institution. Of course, this is a very important step which is also as we know a precondition of the next IMF review. But is this the only necessary requirement that Ukraine has to fulfill in order to get the next disbursement?
MR. RICE: Okay. Thank you for that. I'm just going to dovetail that with what I'm looking at online which is two other questions on Ukraine. One is close to yours, it's on the anti-corruption and one is on the pension reform so I will just bundle them if that’s okay with you.
So first on the corruption issue, you’ve heard me here before, you’ve seen recent news from the IMF on the importance that we attach to corruption generally and in line with this, the IMF supported reform program in Ukraine has focused on corruption and governance right from the start. From the very beginning, given its macroeconomic implications, the establishment of the anti-corruption court, consistent with the Venice Commission’s recommendations, has been an essential part of the program as I think you know.
The letter to which you refer, the letter that was sent to the authorities, expressed staff’s concerns about the consistency of several provisions in the draft law with Ukraine's commitment under the program and the recommendations of that Venice Commission that I mentioned. Now we hope that the authorities take these concerns from IMF staff into account, and that the draft bill is amended between readings in parliament.
In terms of the next review, I think the issue of anti-corruption and what I've just described needs to be set in a broader context. As always with any review there are usually a number of issues, a range of issues that are discussed and I'm sure that’s going to be the case with Ukraine as well.
I want to take the question on pension reform that I mentioned. Ukraine recently adopted the pension law and what I will say on that, as you know the pension law introduces some important provisions to modernize the pension system in Ukraine but also has some shortcomings that undermine incentives for people to work longer and contribute to the system and it does not fully ensure a fair and sustainable pension system so we think a bit more work needing to be done there. Okay on Ukraine?
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Саакашвили. Новое лицо в украинской политике.
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