Tuesday, April 18 2017 17:53 EEST
Ukraine
IMF offers recipe for Ukraine's pension system
IMF, Recipe, Ukraine's, Pension, System

The International Monetary Fund (IMF) says it is early to introduce defined contribution (DC) plans in Ukraine, according to the Ukrainian economic news portal Ekonomichna Pravda (EP).

"The introduction of the so-called DC system (Tier 2) in addition to the existing system, as many insist on, will not make any sense without fixing the drawbacks of the existing system prior to that," IMF mission head Ron van Rooden wrote in an article published by the EP.

"The introduction of the DC system would be premature, taking into account the current level of the development of the financial markets and the legislative basis in Ukraine," he said.

He also says he believes that Ukraine should first of all find a way to reduce an inflow of new retirees and boost payments to the pension fund.

Earlier the IMF said that Ukraine could not permit itself to delay a comprehensive pension reform, including through raising the retirement age.

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