Azarov blames IMF for thwarted association with EU

11:11, 22.11.2013 1 min read

The extremely harsh conditions of the International Monetary Fund (IMF) loan were the last argument in favor of the Ukrainian government's decision to suspend preparations for signing an association agreement with the European Union, Ukrainian Prime Minister Mykola Azarov said.

"The IMF position presented in the letter dated November 20 was the last straw," Azarov told the Verkhovna Rada on Friday.

Azarov criticized the IMF on Thursday for being too strict in its terms of refinancing of the standby loans issued in 2008 and 2010.

"The terms are an increase of gas and heating tariffs for the population by approximately 40%, a commitment of freezing basic, minimal and net salaries on the current level, a significant reduction of budget expenditures, the lowering of energy subsidies, and the gradual curtailment of VAT exemption benefits for agriculture and other sectors," the prime minister said.