IMF approves $1 billion in Ukraine aid after long delay

The International Monetary Fund resumed its bailout of war-torn Ukraine, approving disbursement of USD 1 billion from an aid package that had been held up in part on corruption concerns.

Kiev had been waiting for the resumption of lending since August of last year in a USD 17.5 billion program intended to help stabilize the country after the 2014 ouster of pro-Russian President Viktor Yanukovych.

The country has suffered deep economic contractions after two years of war, with GDP contracting 9.9 per cent in 2015.

Wednesday's decision by the IMF Executive Board brings the total amount disbursed to about USD 7.62 billion, the Fund said in a statement.

The Fund's Executive Board said it approved the disbursement despite Ukraine's failure to meet several program targets, including on limiting debt, boosting reserves and easing foreign exchange restrictions.

IMF Managing Director Christine Lagarde had said in February that a resumption of funding could be difficult without substantial anti-corruption and reform efforts by Ukraine. The reforms called for have been unpopular but local lawmakers have approved measures proposed by the Fund.

The USD 1 billion approved Wednesday was short of the USD 1.6 billion expected in the latest tranche of lending but the Fund did not explain the difference.