Ukraine Parliament Repeals Tax On Foreign Currency Transactions

KIEV, Ukraine -- Ukraine’s parliament abolished a tax on foreign currency transactions, meeting one of the International Monetary Fund’s requirements for the country’s $15.2 billion loan program.

The legislation, which scraps a 0.5 percent duty on buying or selling foreign currencies through financial institutions, was backed by 248 lawmakers in the 450-seat legislature.

The tax, introduced in 1998 to raise funds for the country’s pension fund, restrained foreign investment, according to the central bank.

Ukraine was forced to turn to the IMF for a bailout after the global financial crisis undermined economic growth and weakened the currency.

The Washington-based lender approved the loan in July, the second since late 2008, and has disbursed $3.4 billion so far.

Source: Bloomberg