Russia says no to Ukraine $5 billion loan request

17:34, 20 May 2009
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"We analysed the situation and we said no..."

Russia has decided not to lend Ukraine $5 billion, Deputy Finance Minister Dmitry Pankin told Reuters on Wednesday.

According to Reuters, Ukraine asked for the funds in February to help its economy withstand the economic downturn and help pay for Russian gas.

"They proposed to borrow and the decision to offer such a loan was not made ... We analysed the situation and we said no," Pankin said, speaking in English.

Ukraine received a second IMF loan tranche worth $2.625 billion last week, part of a $16.4 billion loan programme. It had been held up for three months in a dispute over budget policies.

Pankin also said Russia had not made a decision about whether to loan money to Iceland, which asked for funds last autumn.

"About Iceland we didn`t take any decision up to now. There are some questions about Iceland`s financial situation ... And the second part of the story is that when we started our discussion then it was a different financial situation for us, we expected that our problems would not be so serious," he said.

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