Washington: The International Monetary Fund approved a $15.2 billion (Dh55.8 billion), two-and-a-half-year loan to Ukraine, which agreed to trim its budget deficit and raised natural gas prices to qualify for the funds.
The Washington-based institution's board of directors agreed to disburse $1.9 billion immediately, with subsequent payments subject to quarterly reviews.
"Ukraine is emerging from a difficult period nduring which the economy was severely hit by external shocks and exacerbated by domestic vulnerabilities," John Lipsky, the fund's first deputy managing director, said in a statement.
Durable growth
"Authorities are committed to addressing existing imbalances and putting the economy on a path of durable growth, through important fiscal, energy, and financial sector reforms," Lipsky said.
Ukraine got a two-year, $16.4 billion loan from the IMF in 2008 after the global recession cut demand for its exports.
The nation has received $10.6 billion and payments were frozen in November as the government declined to cut spending ahead of presidential elections at the start of this year.
The Cabinet of Prime Minister Mykola Azarov, hopes to use about $2 billion from IMF funds to cover budget deficit this year, Deputy Premier Serhiy Tigipko said yesterday.
The government this month increased gas prices for households and heating companies.
Under policies attached to the loan, the consolidated general government deficit has to reach 5.5 per cent of gross domestic product this year and 3.5 per cent next year.
