International Monetary Fund (IMF) announced that economic and financial conditions in Ukraine had stabilized, but as a condition for resuming the cooperation, the Fund urged the parliament to veto the act that approved the pay increase in the state.

The announcement was issued after the IMF negotiated with the authorities in the country about the loan worth 16.4 billion dollars.

The IMF mission noted the Law of salaries and pensions, which the Ukrainian Parliament approved this week, must be put out of force because it is contrary to the objectives of the program.

Ukraine has stable and high growth, since the beginning of this decade by the end of 2007, but global economic crisis caused a drop in demand for products from the black and the chemical industry, whose were Kiev’s most of the export earnings.