An MP warned of a ‘financial tragedy’ for Ukraine as soon as next month if taxes aren’t raised in the country

Ukraine could face a financial catastrophe as early as the beginning of spring if the authorities do not raise taxes in order to secure a new loan from the International Monetary Fund.

This was stated in an interview with Ukrainian Forbes by Danylo Hetmantsev, head of the Verkhovna Rada committee on finance, tax, and customs policy.

“Not all my colleagues have a sense that a financial tragedy is coming. I do—and the finance minister does too, because he understands that in April there will be nothing to fund expenditures with,” the lawmaker said.

He noted that postponing the fulfillment of the requirements does not cancel their mandatory nature.

“Today we are already using the funds that were allocated for the second half of the year. The IMF’s position on the government-agreed benchmarks is very simple: they are mandatory. And moving them into ‘prior actions’ (measures that must be taken before receiving a loan—in the financial sphere) did not change that attitude,” Hetmantsev said.

At the same time, he criticized the Cabinet of Ministers, which he believes is only worsening the situation by acting inconsistently: on the one hand, agreeing to IMF benchmarks in the program, and on the other hand expanding an “absolutely ineffective national cashback program” by paying out 15% of the cost of goods.

“That’s why many people in the government and parliament don’t have a sense that a financial tragedy is coming—they think it will somehow work out, because it was possible to get through such periods before. This time the situation is different,” Hetmantsev explained.

Earlier, the MP had already said that Ukraine risks being left without international financing, which could lead to the suspension of social payments in the coming months.