IMF warns of risk of EFF program failure if Ukraine's 2016 budget not passed

"Approval of a budget consistent with the programme objective of reducing the general government deficit to 3.7% of GDP is a key condition for the completion of the second review under the EFF-supported programme. At the same time, it is equally important that the budget is supported by structural reforms to remove exemptions and widen the tax base, as well as streamline government spending on a sustainable basis, which also are key objectives of the program," IMF First Deputy Managing Director David Lipton said. "Approval of a budget that deviates from program objectives for 2016 and the medium-term will interrupt the program and inevitably disrupt the associated international financing," he said.