KIEV (Reuters) – The International Monetary Fund approved a new $3.9 billion stand-by loan agreement for Ukraine, Ukrainian President Petro Poroshenko said in a statement on Facebook (NASDAQ:) on Tuesday.
The Finance Ministry said a first tranche of $1.4 billion should come by Dec. 25, and decisions on the next two tranches would come in May and November next year.
IMF aid had effectively been frozen since April 2017 due to Ukraine’s stop-start efforts to implement reforms and tackle corruption as required by the IMF and other donors.
“Such decisions that come from leading world financial institutions ensure stability of our progress and strengthen resilience of Ukraine against severe internal and external challenges,” Poroshenko said, announcing the agreement.
The new agreement spans 14 months and replaces a previous $17.5 billion aid program that has propped up Ukraine’s war-battered economy.
The prospect of securing more IMF loans has allowed the government, which must service a rising debt burden next year, to go to the market to issue new debt, and paved the way for the European Union and other foreign donors to also disburse aid.
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Source: Investing.com
