OREANDA-NEWS. June 17, 2011. Yesterday, Ukraine’s parliament, the Verkhovna Rada, passed controversial pension reform legislation in a partisan vote, with only coalition deputies approving of the measure. Opposition deputies from the Tymoshenko Bloc and Communist Party abstained. Key provisions of the legislation are that it lowers the maximum pension limit, and gradually increases the retirement age for men to 62 and women to 60. President Viktor Yanukovych, whose Party of Regions leads the coalition in the Rada, earlier this week demanded parliament immediately consider the makeover to the pension system. Pension reform is one of the key requirements made by the International Monetary Fund (in addition to gas tariff increases) before resumption of its USD 16.5 bln loan program.

Concorde Capital: the rapid passage  in the first reading of this bill, which was only included on the Rada’s agenda earlier this week, indicates the government is becoming more concerned about unlocking another IMF loan tranche this summer. The government has had the majority in parliament and could have strong-armed this legislation through long ago, but appeared to be biding its time with popular support in the gutters. Indeed, the government can push the package through on second reading too and then it just needs Yanukovych’s signature before going into effect. However, by going this route, the government is risking pushback from the population, which mounted widespread protests last fall over tax reforms, and the opposition, which might finally find in this a rallying point.