If the Rada fails to pass the parcel law, IMF and EU loans could be suspended—media reports
26 May 10:16
Parliament could block billions of euros from entering Ukraine’s budget if it fails to pass a bill on parcel taxation. This is reported in an RBC-Ukraine article, according to "Komersant Ukrainian".
The condition regarding the adoption of the law on parcel taxation may be designated as a “prior action.” This would mean that Ukraine would not receive the second tranche of the IMF loan until the law is passed.
Finance Minister Serhiy Marchenko previously confirmed that there are no alternatives.
“We have no way to remove this issue or renegotiate it in any way…,” said Marchenko.
The suspension of IMF funding will also stall the EU loan. Its military component for weapons procurement will proceed, but Ukraine will no longer be able to receive the €8.35 billion for budgetary needs.
It should be noted that more than half of Ukrainians support the abolition of tax exemptions on parcels. The tax changes have public support but are stalled in parliament.
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