April 7, 2017

IMF approves $1B loan to Ukraine

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WASHINGTON – The International Monetary Fund (IMF) has approved a $1 billion loan payment to Ukraine.

The IMF is supporting Ukraine with a $17.5 billion bailout program in exchange for Kyiv implementing reforms and tackling corruption.

Ukrainian President Petro Poroshenko wrote on his Facebook page on April 3 that the approval was “further recognition of Ukrainian reforms.”

David Lipton, acting chair of the IMF’s board, said Ukraine’s economy was showing signs of improvement, with lower inflation and a doubling of international reserves. But he said Kyiv still needed to tackle corruption “decisively.”

The IMF had postponed the disbursement of the new loan following Kyiv’s imposition of a trade embargo on areas controlled by Russia-backed separatists in the east of the country.

Ukraine received $1 billion from the IMF in October, its third tranche of money under the bailout program launched in March 2015.

Kyiv has received about $7.6 billion in total so far under the program.

Based on reporting by Reuters and AP.