Reuters: US Dollar Report: IMF urges Ukraine government to raise gas prices at home

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IMF urges Ukraine government to raise gas prices at home Oct 31st 2013, 09:17 KIEV | Thu Oct 31, 2013 5:17am EDT KIEV Oct 31 (Reuters) - An International Monetary Fund mission visiting Ukraine has urged the Kiev government to raise gas prices for domestic consumers and introduce a flexible exchange rate for the national currency, the hryvnia, a Fund official said on Thursday. Jerome Vacher, the IMF's resident representative in Kiev, told a ratings conference that these were among recommendations made by the mission which has just ended a 10-day trip to the ex-Soviet republic. "Measures included a flexible exchange rate, strengthening of the banking system, fiscal adjustment, reform of the energy sector (and) substantial improvement of the business environment," Vacher told the annual Fitch ratings conference. He made clear that by energy reform the IMF meant raising the tariffs for domestic consumers of gas - both industry and households - something which has been long opposed by the government.

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