The International Monetary Fund (IMF) resident representative in Ukraine Max Alier met on Tuesday with Ukraine's trade unions heads, who are concerned over the fund's demands not to increase minimum pensions and wages.

"The trade union representatives showed their support for the financial assistance supplied by the IMF to Ukraine, but showed concerns that the policy conditionality in the IMF-supported program may be contributing to the deterioration in living standards of the nation," the IMF admitted in a statement issued on Tuesday.

Ukraine's trade union heads reported at a meeting that the government's policies under the program put an excessive burden of the adjustment on labour.

The IMF mentioned that they share with the trade unions a common aim in terms of macroeconomic stability and creation of the conditions for a sustained improvement in the living standards of the nation, with a particular emphasis on the most vulnerable groups in the society.

Alier reported that under the program public wages and pensions would increase in line with inflation - which implies an increase of about 10%.

Going beyond the inflation rate, however, would place an unsustainable burden on public finances, he added.

The trade union delegation was leaded by Hryhoriy Osovy, Deputy Head of the Federation of Trade Union of Ukraine (FTUU), and included representatives from the trade union of the workers of the communal utilities, local industries and enterprises for personal services, the trade union of the fishery industry, the trade union of the city branch of the automobile transportation, as well as other members of the FTUU. The meeting was held at the IMF Resident Representative Office in the capital of Ukraine.