Yatseniuk has urgently left for U.S.

17:28, 04 November 2008
Ukraine
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Problems with IMF loan?

The speaker of Ukraine`s parliament flew to Washington on Tuesday to meet with the head of the International Monetary Fund (IMF) for discussions on a $16.5 billion loan that the country hopes to receive, RIA Novosti reported.

The IMF will hold a meeting on the loan to Ukraine on Wednesday.

Last Friday, Ukraine`s parliament approved a set of measures needed to receive the credit, as the country struggles to cope amid the global credit crisis. President Viktor Yushchenko signed the bills into law on Monday.

"Supreme Rada Speaker Arseniy Yatsenyuk has urgently left on a working visit to Washington, for discussions on the provision of IMF credit to Ukraine. During his visit, the head of the Ukrainian parliament intends to meet with IMF Managing Director Dominique Strauss-Kahn and World Bank President Robert Zoellick. Several bilateral meetings are also planned," a statement on the parliamentary website said.

The IMF announced the emergency loan nine days ago, to help the country through the financial crisis, but demanded that Ukraine first pass new legislation to stabilize the economy and modify banking regulations.

Under the new laws, a stabilization fund will be set up to help struggling banks repay their foreign debt. The government will also provide more extensive guarantees for deposits in banks.

The financial crisis has seen Ukrainians rush to withdraw their savings, fearing banking collapses. More than $3 billion were pulled out of banks in October.

Ukraine`s economy has been hard hit by the global credit crunch, along with the falling price of steel, a key national export.

RIA Novosti

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