The head of the International Monetary Fund’s (IMF) mission in Ukraine has told the nation it will need to find a way to finance itself, because it is likely to see foreign support diminish in the future.
Gavin Gray, Mission Chief for Ukraine, at the European Department of the International Monetary Fund, said in an interview with NV Business
that Kiev is going to need to find a way to begin to collect more taxes.
In the interview, published on Monday, Gray said, “Everyone understands that over time international support for Ukraine will decrease, so the country needs to develop internal resources for self-financing. The authorities should focus on strengthening the capacity to collect revenues – both tax and customs.”
After the conflict in the country ends, Gray said that Ukraine will need to find more tax money in order to fund its increased social expenditures.
The IMF had approved a four-year program to loan $15.6 billion to Kiev back in March. The international fund already delivered two tranches of over $3.5 billion to the war-torn nation.
The IMF representative said that to fulfill the conditions set by the International Monetary fund in order to receive the aid, Kiev will need to now implement a raft of tax reforms, including business tax audits, and additional measures implemented to combat money laundering, and terrorist financing.