Moneycontrol
Get App
you are here: HomeNewsWorld
Last Updated : Sep 15, 2016 11:57 AM IST | Source: PTI

IMF approves $1 billion in Ukraine aid after long delay

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 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.

Close

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.



Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months at 289. Use code FREEDOM.
First Published on Sep 15, 2016 11:50 am
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant