KIEV, Sept. 15 - Further progress in fiscal reforms is the key to ensure medium-term sustainability in Ukraine, International Monetary Fund Managing Director Christine Lagarde said on occasion of the issue of the third $1 billion tranche to Ukraine under the Extended Fund Facility (EFF) program.

"The authorities need to avoid tax policy changes that lead to higher deficits. The focus should be on improving tax and customs administrations. Moreover, parametric pension reform is crucial to reduce the pension fund's large structural deficit, help reduce fiscal deficits and public debt, and create room to bring pensions to sustainable levels over time," she stated.