diff --git a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/KonanLoweringPhases.kt b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/KonanLoweringPhases.kt
index 109375b05cf..961d6da5cab 100644
--- a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/KonanLoweringPhases.kt
+++ b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/KonanLoweringPhases.kt
@@ -113,6 +113,13 @@ internal val lateinitPhase = makeKonanFileLoweringPhase(
         prerequisite = setOf(inlinePhase)
 )
 
+// TODO make all lambda-related stuff work with IrFunctionExpression and drop this phase (see kotlin: dd3f8ecaacd)
+internal val provisionalFunctionExpressionPhase = makeKonanModuleLoweringPhase(
+    { ProvisionalFunctionExpressionLowering() },
+    name = "FunctionExpression-before-inliner",
+    description = "Transform IrFunctionExpression to a local function reference"
+)
+
 internal val stringConcatenationPhase = makeKonanFileLoweringPhase(
         ::StringConcatenationLowering,
         name = "StringConcatenation",
diff --git a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/ToplevelPhases.kt b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/ToplevelPhases.kt
index fe528284793..0f3d76612b6 100644
--- a/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/ToplevelPhases.kt
+++ b/backend.native/compiler/ir/backend.native/src/org/jetbrains/kotlin/backend/konan/ToplevelPhases.kt
@@ -239,6 +239,7 @@ internal val allLoweringsPhase = namedIrModulePhase(
         description = "IR Lowering",
         lower = removeExpectDeclarationsPhase then
                 lowerBeforeInlinePhase then
+                provisionalFunctionExpressionPhase then
                 inlinePhase then
                 lowerAfterInlinePhase then
                 interopPart1Phase then
diff --git a/gradle.properties b/gradle.properties
index ed1e8de087b..2eca3a9ba4c 100644
--- a/gradle.properties
+++ b/gradle.properties
@@ -18,8 +18,8 @@
 buildKotlinVersion=1.3.50-dev-787
 buildKotlinCompilerRepo=https://teamcity.jetbrains.com/guestAuth/app/rest/builds/buildType:(id:Kotlin_dev_Compiler),number:1.3.50-dev-787,branch:default:any,pinned:true/artifacts/content/maven
 remoteRoot=konan_tests
-kotlinCompilerRepo=https://teamcity.jetbrains.com/guestAuth/app/rest/builds/buildType:(id:Kotlin_dev_Compiler),number:1.3.50-dev-2110,branch:default:any,pinned:true/artifacts/content/maven
-kotlinVersion=1.3.50-dev-2110
+kotlinCompilerRepo=https://teamcity.jetbrains.com/guestAuth/app/rest/builds/buildType:(id:Kotlin_dev_Compiler),number:1.3.60-dev-206,branch:default:any,pinned:true/artifacts/content/maven
+kotlinVersion=1.3.60-dev-206
 kotlinStdlibRepo=https://teamcity.jetbrains.com/guestAuth/app/rest/builds/buildType:(id:Kotlin_dev_Compiler),number:1.3.50-dev-2110,branch:default:any,pinned:true/artifacts/content/maven
 kotlinStdlibVersion=1.3.50-dev-2110
 testKotlinCompilerVersion=1.3.50-dev-2110