You're reading: Ukraine axes ministers in administrative reform

Ukrainian President Viktor Yanukovych on Friday ordered cuts in the number of government ministries to reduce red tape and expenses.

Yanukovich reduced the number of ministries to 16 from 20 and the number of cabinet members to 17 from 26, according to new presidential decrees.

They showed that all key ministers, including Prime Minister Mykola Azarov and Finance Minister Fedir Yaroshenko, had kept their posts.

The Ukrainian government is one of the largest in Europe and has been criticised even by its own members for duplication of functions and a lack of responsibility.

Yanukovich has said the administrative reform, which also cut the number of state departments and agencies, should reduce budget expenditures and would help Ukraine cut the state budget deficit, a core condition for future cooperation with the IMF.

Under its deal with the International Monetary Fund, Ukraine will receive a credit of $15 billion over two and a half years, which could spur renewed investor interest.

The IMF has promised to decide on a second tranche of the loan by the end of this year, and says Ukraine is keeping broadly in line with targets set. The programme is key to the government’s efforts to revive the economy, which is dominated by steel exports, after a 15 percent contraction in 2009.