The International Monetary Fund has reached a tentative agreement with Ukraine to lend the eastern European country $16.5 billion to help it combat a series of economic problems tied to the international financial crisis. It has also announced a broad agreement with Hungary on a set of policies designed to bolster near-term stability, according to iStockAnalyst.
The International Monetary Fund (IMF), a 185-member institution, has more than $200 billion of loanable funds and can draw on additional resources through two standing borrowing arrangements with groups of IMF member countries.
The agreement is subject to approval by IMF management and the executive board, on an economic program supported by a $16.5 billion loan under a 24-month stand-by arrangement. Consideration by the board would follow approval of legislative changes to Ukraine`s bank resolution program.
On Hungary, the IMF has said that an IMF staff mission and the Hungarian authorities, in close consultation with the European Union, have reached a broad agreement on a set of policies that will bolster the Hungarian economy`s near-term stability and improve its long-term growth potential. The authorities` program is expected to ensure fiscal sustainability and strengthen the financial sector.
Dominique Strauss-Kahn, managing director of IMF, said: "The IMF is moving expeditiously to help Ukraine, and this program is focused on the essential upfront measures needed to maintain confidence and economic and financial stability. The strength of the program justifies the high level of access, equivalent to 800% of Ukraine`s quota in the fund."