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The Memorandum of the IMF: the right to wiretap, reforms and the establishment of anti-corruption courts

Меморандум МВФ: право на прослушку, реформы и создание антикоррупционных судовVoiced the demands of the IMF.

The IMF has published the Memorandum on economic and financial policy of Ukraine in the framework of the third review of the eff EFF.

A little later the Ministry of Finance has provided a translation of the document into the Ukrainian language.

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The IMF contain materials, including a letter dated 29 March, signed by the President, Prime Minister, Finance Minister and head of the national Bank of Ukraine. This letter describes the impact on the situation in the country in connection with the blockade and ORDA decision to defer consideration of the allocation of the 4th tranche.

In addition, the IMF published a study on corruption in Ukraine, the need to reform the pension system of Ukraine with the recommendation to gradually raise the retirement age to 63-65 years to 2026 and 2031. and the transition to inflation targeting and improved monetary policy.

Pension reform

Ukraine needs to pass pension reform before the end of April 2017. To enter into force on pension reform from 1 January 2018.

According to the data presented in the document, the pension reform will include a new list of options retirement with a wide range of retirement age. It is expected that the person who is retiring, will be to choose the terms and conditions of retirement, which will depend on General seniority.

Also, the reform should include the additional pension payments. This measure is expected to stimulate the duration of employment and later retirement.

In addition, the reform will promote long-term savings of at least 3% of GDP.

In published IMF documents state that the average effective age of retirement in Ukraine is 58.5 years for men and 55.9 years for women.

NABOO: Wiretapping and undercover investigation

NABOO until the end of may 2017 shall be eligible wiretapping and investigation undercover. The document stated that this condition had to be completed in late November 2016, and a new deadline was scheduled for may 2017.

Benchmark of cooperation with the IMF determined that changes need to be submitted to Parliament and adopted by the end of may this year. These changes should ensure an opportunity for the NEB to conduct undercover operations, intercept messages, access to computer systems and to control correspondence. Now, recall that NABU is in need of help, in particular, security service of Ukraine to conduct such investigation.

Also, the Memorandum States that the works of NABOO and decisions of investigative judges need to be protected from leakage. This should be achieved by restricting access to officers of the NAB and Special anti-corruption Prosecutor’s office as long as the investigation has not been completed or closed.

The NEB should also continue to publish statistics concerning the investigations into acts of corruption by high-ranking officials on his page in free access.

Land reform

Ukraine should adopt the law on turnover of agricultural lands until the end of may 2017. It was also noted that this is a new deadline for execution of structural lighthouse, which remains from the end of September 2016.

Hence, the current moratorium on sale of agricultural land shall lose force as of the end of 2017, allowing the sale of land under state and private ownership, immediately afterwards.

Ukraine is obliged to start a campaign to inform the public and explaining the benefits of this reform.

Anti-corruption court

The law on the anti-corruption court should be taken until mid June 2017. The law is necessary in order to prosecute corrupt actions by high officials of the specialized and priority litigation. Recall that the anti-corruption court was established in accordance with the decision taken in June 2016, the Law of Ukraine “On judicial system and status of judges” and its activities will comply with the European Convention on human rights and other Council of Europe standards.

“We (Ukraine – ed.) will serve until mid-April 2017 to the Parliament the relevant draft legislative acts for adoption by mid-June 2017”, – the document says. Anti-corruption courts should start before the end of March 2018.

It is noted that the bill will contain provisions to ensure the budgetary autonomy and the corresponding provision of anti-corruption courts and to determine the selection process of the anti-corruption judges.

It is noted that in accordance with article 33.2 of the law of Ukraine “On judicial system and status of judges”, special requirements will be introduced in the proposed bill to ensure the compliance of candidates for positions of judges of anti-corruption demands not only an exemplary reputation and high professional qualities, but also requirements to possess the relevant specific skills required for the consideration of criminal cases related to corruption.

“Given this, the act will provide procedural rules, including exams and assignments to assess certain skills
candidates who will be based on a transparent assessment of candidates of the High qualifications Commission of judges of Ukraine with the involvement of respected professionals in the generally recognized ethical standards and experience in conducting anti-corruption proceedings, including the possible involvement of expertise and relevant experience gained in other countries”, – said in the Memorandum.

Privatization

Ukraine has reaffirmed its commitment for the privatization of “Odessa port plant” and will implement the necessary measures, including the settlement of balance identified deficiencies, to attract reputable international investors and complete privatization in the first half of 2017.

In parallel, Ukraine will initiate the privatization of a large number of state-owned enterprises for privatization until the end of September 2017. Vary: PJSC “Tsentrenergo” and “Turboatom”, whose shares have been already transferred to the state property Fund and regional power distribution companies, power companies, whose shares will be transferred to the state property Fund by the end of April 2017. Likewise, the expected approval of legislation that will allow the total privatization of the state enterprise “Ukrspirt” state alcohol producer in Ukraine, which includes about 150 GP connected to the end of March 2017 with a view to contest the sale was completed before the end of September 2017.

New sneaks, revision and monetization of subsidies

In addition, the Memorandum identifies the new so-called structural beacons to Ukraine. In particular, the Verkhovna Rada should adopt legislation creating a new civil service responsible for the investigation of financial crimes against the state, under the control of the Ministry of Finance to replace the current tax police and the consolidation of all powers to combat financial crimes against the state in a single Agency, while avoiding duplication, until the end of April 2017.

Until the end of July 2017 should be reviewed system settings and utilities subsidies to improve targeting, introduced adjustments of social norms in off-peak months during the heating season, applied tariffs for gas and heating based on the capacity that will allow to transfer some of the value in the summer months. All changes shall enter into force from 1 may 2017.

Until the end of August 2017, the government should take the decision about the monetization of the utilities subsidies at the level of enterprises providing utility services.

Until the end of December, the Finance Ministry should be created a centralized database of recipients of social assistance.

© 2017, paradox. All rights reserved.

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