IMF Approved the $ 5 Billion Loan to Ukraine

As part of the stand by lending mechanism, the Ukrainian side will receive a loan within 1.5 years. The Executive Board of the International Monetary Fund approved a new loan program for Ukraine in the amount of five billion dollars, which is designed for 18 months, that is the result of the June 9 meeting. So informed the statement of IMF press service. The document noted that within the framework of the stand by credit mechanism, Ukraine will be provideв with five billion dollars credit. "The new program aims to help Ukraine cope with COVID-19 pandemic problems ensuring payments balance and budget support, thus, maintaining achievements and promoting a small set of key structural reforms," the IMF pointed. In June, Ukraine will receive the first $ 2.1 billion tranche. The remaining funds are planned to be allocated in four more tranches. The Fund noted that Ukraine needs additional reforms for economic growth, while the coronavirus outbreak "worsened prospects and reoriented government policy towards containment and stabilization." According to forecasts, the country's economy will seriously decline in 2020, "revenues will fall sharply and large emergency expenses will be needed to deal with the crisis. It is emphasized that the new IMF program is focused on reducing the negative consequences of the crisis, supporting the independence of the central bank and a flexible exchange rate, as well as maintaining financial stability after the completion of the bank rehabilitation process. Earlier, the Ministry of Finance stated the requirements of the International Monetary Fund to continue cooperation with Ukraine.