News & Reports News Year 2010 December , 2010 IMF approves new $1.5b loan to Ukraine

IMF approves new $1.5b loan to Ukraine

The International Monetary Fund on Wednesday approved a US$1.5 billion loan to Ukraine in the second stage of a massive aid package.

The IMF praised the Ukrainian government's policies to pull the economy out of one of the most severe recessions in the world caused by the global economic crisis.

The IMF said that after successfully completing a first review of Ukraine's economic performance, it will immediately disburse US$1.5 billion in loan to Kiev.

'Ukraine's satisfactory performance under the economic program supported by the Stand-By Arrangement, along with strong policy commitments for the coming year, are supporting a steady recovery in confidence and broadening of economic activity,' said Mr John Lipsky, acting chair of the IMF's executive board.

The IMF in July announced it would give Ukraine loans worth US$15.15 billion over the next two and a half years in a bid to help the country out of the crisis.

Around US$1.9 billion of the credit was made available immediately with subsequent disbursements subject to quarterly reviews.

IMF credit boost for Poland

The IMF’s executive board has “informally” approved Poland’s request to extend its Flexible Credit line and increase the limit to $29 billion, the country’s Finance Ministry said.

In July, the IMF approved Poland’s $21 billion credit line for one year. Poland is taking advantage of IMF’s new rules for credit lines, “doesn’t intend to use the credit line,” the ministry said Thursday.