IMF approves $3.9 billion credit line for Ukraine ahead of elections

By Matthias Williams and Natalia Zinets KIEV (Reuters) - The International Monetary Fund approved a new $3.9 billion stand-by aid agreement for Ukraine on Tuesday, intended to help the country maintain stability and the trust of investors as it heads into a choppy election period. The Finance Ministry said a first tranche of $1.4 billion should arrive by Dec.

Reuters December 19, 2018 05:05:41 IST
IMF approves $3.9 billion credit line for Ukraine ahead of elections

IMF approves 39 billion credit line for Ukraine ahead of elections

By Matthias Williams and Natalia Zinets

KIEV (Reuters) - The International Monetary Fund approved a new $3.9 billion stand-by aid agreement for Ukraine on Tuesday, intended to help the country maintain stability and the trust of investors as it heads into a choppy election period.

The Finance Ministry said a first tranche of $1.4 billion should arrive by Dec. 25, and decisions on the next two tranches would come in May and November next year.

Separately, the World Bank on Tuesday announced a $750 billion loan guarantee to help Ukraine raise an estimated $1 billion in debt on international markets.

IMF aid had effectively been frozen since April 2017 due to Ukraine's stop-start efforts to implement reforms and tackle corruption as required by the IMF and other donors. The government reluctantly raised household gas tariffs in October, a potential vote-loser that was seized on by the opposition.

Ukraine holds what are likely to be tight presidential and parliamentary elections next year, while fighting a conflict in eastern Ukraine that has killed more than 10,000 people since 2014. The authorities imposed martial law in some parts of the country in November, citing the threat of a Russian invasion.

The new IMF agreement spans 14 months and replaces a $17.5 billion programme that has propped up Ukraine since it plunged into turmoil following the 2014 Crimea annexation.

"The Fund's decision stands as an important display of recognition of our undeniable progress in macroeconomic stabilization and confirmation of success in reforms," Ukrainian President Petro Poroshenko said.

The IMF said the programme would focus on four priorities, including fiscal consolidation, reducing inflation, strengthening the financial sector and pushing reforms.

The prospect of securing more IMF loans has allowed the government, which must service a rising debt burden next year, to go to the market to issue new debt, and paved the way for the European Union and other foreign donors also to disburse aid.

The World Bank approved a loan guarantee geared at pushing reforms and tackling corruption.

"Overall, the reform programme ... addresses structural bottlenecks and sends a signal to investors about Ukraine's ability to sustain reforms and address macroeconomic vulnerabilities ahead of the 2019 elections," said Satu Kahkonen, World Bank Country Director for Ukraine.

(Reporting by Matthias Williams and Natalia Zinets, Editing by Alison Williams and Rosalba O'Brien)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Oil rises 2% as OPEC complies with production cuts
Business

Oil rises 2% as OPEC complies with production cuts

By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut

Tesla's back-to-back price cuts bring sticker on U.S. Model S below $70,000
Business

Tesla's back-to-back price cuts bring sticker on U.S. Model S below $70,000

By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.

Trump cites teenaged son's bout with coronavirus in calling for schools to reopen
World

Trump cites teenaged son's bout with coronavirus in calling for schools to reopen

By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son