IMF Memo has no obligation to raise retirement age – Groysman

However, he urged the media not to resort to speculations on this subject, especially in terms of the probability of raising or not raising the retirement age.

"We are engaged with the IMF. We are completing the work on the Memorandum. As soon as we complete it, we'll elaborate on the parameters. And let no one speculate on this. The Memorandum has not a single word about raising the retirement age," Groysman said.

As UNIAN reported earlier, the government insisted on pension reform in Ukraine because the accumulated imbalances did not allow payment of decent pensions and thus required significant budgetary injections. At the same time, the government calls for a reduction in the deficit of the Pension Fund's budget as a key objective of pension reform.

Read alsoUkrainian Government not to raise retirement age – deputy ministerPension reform is part of the reform program approved by the International Monetary Fund. However, the memorandum signed between the government of Ukraine and the IMF management in September 2016 does not contain strict rules for raising the retirement age. It provides only recommendations for narrowing the Pension Fund's deficit because it is covered with budget funds at the moment. The subsidies the Pension Fund plans to receive from the national budget in 2017 exceed UAH 140 billion, or about $5.18 billion. The Ukrainian authorities and the IMF continue discussing this issue.

Read alsoIMF offers Ukraine 3-year freeze of minimal wage - ministerAt the moment, the government and the IMF are developing a model of pension reform without an obligatory increase in the retirement age.