Archive for January 14th, 2011

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In keeping with the promises made earlier……

January 14, 2011

Well dear readers, the Ukrainian government has abolished a law from 1998 that placed a charge on foreign currency transactions.

The 0.5% tax had been used to fill the pensions pot for Ukraine but now no longer.

http://www.bloomberg.com/news/2011-01-13/ukraine-parliament-repeals-tax-on-foreign-currency-transactions.html

Whilst it is good to see Ukraine keeping its promises to the international community, you have to wonder whether the scrapping of this charge will mean further IMF borrowing to fill the pensions gap this will leave or whether the reforms and proposed reforms to be sanctioned this year will replace that lost revenue.

Still I have a lot of respect for Irina Akimova, who one hopes cast her eye over the IMF agreement entered into by Ukraine’s parliament with the IMF (and not the Presidential Administration of which she is a part).

It is a sad reflection on Ukraine that amongst so many politicians from all parties and so called academics/intelligentsia, that those I actually rate I can count on one hand.

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