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IMF demands Ukraine raise gas prices for households

International Monetary Fund will consider the possibility of opening a new credit line when it sees that the Ukrainian government is ready to hike gas bills for the population

KIEV, May 28 (Itar-Tass) — The International Monetary Fund (IMF) will consider the possibility of opening a new credit line to Ukraine when it sees that the Ukrainian government is ready to hike gas bills for the population, Chris Jarvis, the head of the IMF mission in Ukraine, told a briefing on Monday.

The IMF mission visited Ukraine on May 21-28 to end discussions on article 4 of the IMF charter which provides for discussion of the government’s economic policy in a set period of time. The procedure is standard for all IMF members.

The mission’s representatives met Ukrainian Prime Minister Nikolai Azarov, the National Bank President Sergei Arbuzov, the heads of ministries and departments and businessmen.

In 2010, the Ukrainian government and the IMF agreed on a new credit program for Ukraine worth 15.16 billion dollars. Ukraine received two IMF tranches for a total sum exceeding 3.4 billion dollars. However, cooperation on this program has been frozen since December 2010. The IMF demands that Ukraine raise gas prices for the population, something which the Ukrainian government has been refusing to do so far.

Earlier, Azarov said that Ukraine was not going to ‘beg’ the IMF for loans.

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