IMF mission proposes paying Ukraine $2.8 billion

15:28, 17 April 2009
Ukraine
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The tranche will be disbursed in May

An International Monetary Fund mission to Ukraine proposed that the next tranche of the country’s loan be raised to $2.8 billion, said Ceyla Pazarbasioglu, the IMF mission head, Bloomberg reported.

The mission is recommending to the Washington-based fund’s board that the second installment of a $16.4 billion loan, originally set at $1.875 billion, be disbursed in the middle of May, Pazarbasioglu told reporters in the capital Kyiv today.

The IMF, which had originally planned to pay the second tranche of its loan in February, resumed talks with Ukraine on April 8 after the former Soviet state gave assurances it will make legislative changes to live up to the terms of the international bailout.

Ukraine, like Hungary, Romania and Latvia, turned for support to international financial organizations to avert a default and stabilize its banking system after the global financial crisis dried up access to credit. The IMF approved the two-year loan in November and $4.5 billion was disbursed that month.

Bloomberg

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