. Last Updated: 07/27/2016

IMF Resumes Ukraine Loan Program

WASHINGTON -- The International Monetary Fund said it approved an $867 million loan for Ukraine to help the country prop up its "fragile" economy.


The decision Friday to resume lending to Ukraine came after the country acted to put its economic reform program back on track.


The IMF temporarily halted the loan program earlier this year after Ukraine opened up its credit spigots and delayed privatization and export liberalization.


The "standby" credit approved Friday will be disbursed in regular installments over the next nine months.


To win the IMF's support, Ukraine agreed to tighten its budget by cutting subsidies and to speed up privatization.


Under the plan, the country is seeking to reduce monthly inflation to 1 to 2 percent by the end of this year and to limit the decline in economic output. Monthly inflation in April was 2.4 percent, its lowest rate in 18 months.


The IMF said this year's reform program will be backed up by some $2 billion in foreign financial help.