IMF approves new loan tranche to Kiev

A new loan tranche will be given to Kiev in return for promised reform.

IMF approves new loan tranche to Kiev

World Bulletin / News Desk

Kiev is going to receive a new tranche of the $17.5 billion loan from the IMF despite concerns over its growing national debt and shaky truce in eastern Ukraine torn apart by civil war. In return, the IMF expects Kiev to put its economy “on the path to recovery.” according to a report in RT.
 
Back in March, Kiev already received $5 billion of initial disbursement under the IMF financial assistance program. The policy of the Washington-based institution, representing 188 countries, implies that the IMF would provide financial assistance only to a country that is “sustainable with high probability” of repaying debt.

The IMF assistance program to Ukraine will be for a period of four years and implies financial assistance to the Kiev authorities to be confirmed gradually, in return for implemented reforms in Ukraine, aimed, according to the IMF statement, to “put the economy on the path to recovery” and “strengthen public finances.”

“Ukraine has been an incredibly encouraging situation,” IMF managing director Christine Lagarde said earlier this week. “We have seen political determination to change the face of Ukraine,” she said.

Kiev has welcomed the new tranche, “The new tranche will encourage growth in the economy and reassure financial markets both domestically and internationally,” the Ukrainian Finance Ministry said in a statement.

Güncelleme Tarihi: 02 Ağustos 2015, 17:28
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