"The Ukrainian side has signed the updated memorandum on cooperation," the source told Reuters.

Disbursements have been delayed repeatedly over the past two years due to stop-start progress on reforms. The latest tranche of $1 billion was contingent on Ukraine passing an IMF-backed 2017 budget and implementing banking system reforms.

Read alsoBloomberg: Ukrainian central banker edging toward exit unnerves marketsAs UNIAN reported earlier, in September 2016, after more than a year's break, Ukraine has resumed cooperation with the IMF under the four-year Extended Fund Facility (EFF) worth $17.5 billion. Under this program, Ukraine has already received three loan tranches, totaling $7.62 billion. Ukraine expected to receive the fourth $1 billion tranche by the end of 2016, having fulfilled the key requirements, namely the adoption of the budget for 2017 and nationalization of the country's largest bank, PrivatBank.