Ukraine parliament approves 2021 budget in bid for IMF loans

On Tuesday, lawmakers also voted to restore the powers of the NAZK anti-corruption agency, another step to bolster the government's chances of securing more IMF loans. Marchenko said the budget revenues had been calculated on "realistic forecasts" and agreed with IMF experts.

The Ukrainian parliament on Tuesday approved the 2021 budget with a deficit of 5.5% of gross domestic product, the finance minister said, adding that the vote could pave the way for talks with the International Monetary Fund for new loans.

"The budget is a marker showing that we can fulfil our obligations," Finance Minister Serhiy Marchenko told reporters after the vote. The IMF had approved a $5 billion stand-by loan programme in June and disbursed $2.1 billion to help Ukraine fight a sharp economic slowdown amid the coronavirus pandemic.

But the disbursement of two additional tranches worth a total of $1.4 billion was held up by concerns over Ukraine's reform momentum and the independence of the central bank. On Tuesday, lawmakers also voted to restore the powers of the NAZK anti-corruption agency, another step to bolster the government's chances of securing more IMF loans.

Marchenko said the budget revenues had been calculated on "realistic forecasts" and agreed with IMF experts. The government expects the economy to grow by 4.6% in 2021 after a decline of about 5% in 2020 due to lockdown restrictions imposed to battle the novel coronavirus pandemic.

"The budget is realistic and balanced, it ensures that all government obligations will be met," Marchenko said.

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