Delay in 2016 budget adoption could threaten economic, financial stability of Ukraine - NBU

The delay in the adoption of the national budget for 2016 agreed with the International Monetary Fund (IMF) poses a threat to the economic and financial stability of Ukraine, the National Bank of Ukraine (NBU) reported on its website.

"Further delay or the adoption of the budget not coordinated with the program goals of the memorandum with the International Monetary Fund could jeopardize the economic and financial stability in our country, which is a prerequisite for the National Bank's achieving its objective - price stability," the central bank press service said citing NBU Head Valeriya Gontareva.

According to the report, such a situation could partially neutralize the positive changes observed in the Ukrainian economy in recent years, in particular, a gradual recovery of production, a slowdown of inflation, improvement in the balance of payments and stabilization in the banking sector.

The report also notes the importance of adopting amendments to the Tax Code, which provide for the improvement of tax administration and reduction of fiscal burden on the economy.

"At the same time, the adoption of the budget, proposed by the Ministry of Finance and agreed with the EFF program of the IMF, will allow to not only avoid certain risks but also complete the second review of the IMF program. As a result, the flow of money from the fund and related international funding for a total of about $5 billion will recover," reads a statement.