Install

Get the latest updates as we post them — right on your browser

. Last Updated: 07/27/2016

IMF Plans to Resume Loans To Cash-Strapped Ukraine

KIEV -- The International Monetary Fund is likely to resume loans to Ukraine in a matter of weeks, providing the republic with desperately needed cash, an IMF official said Friday.


"The money will probably come some time in early May," said Alexis Sundakov, the IMF's representative in Ukraine. "It's definitely a question of weeks."


Early this week, the IMF suspended a $1.5 billion standby loan, citing Kiev's overspending of budget targets in the first quarter.


An emergency mission of IMF officials in Kiev this week worked out a compromise deal to provide the financing, which is critical to cover Ukraine's budget deficit and keep inflation down.


The two sides agreed on new reporting procedures and to releasing the money monthly rather than quarterly, so that the IMF can keep a closer eye on Ukraine's fulfillment of conditions for the loan.


The next installment is expected to be $100 million. Nearly $800 million has already been paid out, with about $700 million remaining, as well as $200 million more promised earlier this year.


Volodymyr Ivanov, deputy chief of the international department of Ukraine's National Bank, conceded that the "shift to granting tranches once a month shows that Ukraine didn't satisfactorily fulfill its obligations."


Russia is the only other country receiving IMF assistance that must adhere to a monthly monitoring regime.


The IMF program calls for reining in the budget deficit to bring down inflation from last year's rate of 180 percent.