IMF bails out Ukraine with massive loan

The International Monetary Fund has approved a $16.4 billion loan to Ukraine. The money, $4.5 billion of which will be given immediately, is intended to help restore Ukraine's economy and rebuild financial confidence.

The Ukrainian president Victor Yushchenko welcomed the IMF decision to grant stabilisation credit to the country.

In a statement, circulated by his press-service on Thursday, the president thanked IMF experts “for supporting our actions and plans for ensuring a stable functioning of the national economy and the financial system.”

He also said that the IMF’s assistance “will make it possible for the business community, and especially the financial sector, to feel more confident. The national economy will receive a major resource for the development of its priority spheres. The liquidity of the banking system will be guaranteed.” 

Last month, the loan was jeopardised by the political crisis in the country, caused by an ongoing conflict between President Yushchenko and Prime Minister Timoshenko.

But the deadlock has been resolved and the necessary legislation, required by the International Monetary Fund, has been passed.

“This decision is a signal to the world community on the raising of the credit of confidence for our country,” Yushchenko said.

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