Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

UPDATE 1-IMF approves Ukraine tranche, waives some conditions

Published 05/08/2009, 12:43 PM
Updated 05/08/2009, 12:49 PM

(Combines stories, adds details)

WASHINGTON/KIEV, May 8 (Reuters) - The International Monetary Fund approved on Friday the release of $2.8 billion for Ukraine, the second tranche of a $16.4 billion programme that had stalled for several months due to policy differences.

The IMF board waived a number of previously held conditions, allowing authorities to continue with exchange rate restrictions, multiple currency practices and the imposition of import restrictions.

It has allowed for a budget deficit of 4 percent of gross domestic product, against an initial demand for a balanced budget. Differences over the budget deficit first stalled the loan programme in February.

"The authorities' revised economic programme ... seeks to mitigate the effects of the global crisis, restore confidence in the banking system and preserve fiscal sustainability while protecting the most vulnerable segments of the population," said John Lipsky, the IMF's First Deputy Managing Director.

The Fund said the next tranche of its loan programme would be worth about $3 billion and subject to endorsement by the IMF Board after June 15.

"Accordingly, the next disbursement, which will be available after June 15, will be 2.125 billion SDR or about $3 billion," IMF Mission Chief to Ukraine, Ceyla Pazarbasioglu, said during a conference call. (Reporting by Emily Kaiser and Sabina Zawadzki)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.