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Ukraine : INTERNATIONAL MONETARY FUND approves $19.7b loan for UKRAINE

May 5, 2014

The International Monetary Fund board declared that it has sanctioned a two-year, US$17 billion ($19.7 billion) loan package for cash-strapped Ukraine as it seeks to regain stability after Russia's annexation of Crimea.

The IMF assistance, promised in March, was presented on condition that Ukraine make economic reforms, covering raising taxes, freezing the minimum wage and raising energy prices - all steps that could hit households hard and strain the interim government's tenuous hold on power.

IMF managing director Christine Lagarde commented "Urgent actions were necessary. Urgent decisions were taken by Ukraine and decisions now have been taken by the IMF."

Ukraine's interim government is captured between the demands of international creditors and a restive population that has endured decades of economic stagnation, corruption and mismanagement. The IMF's decision helps Ukraine to get another US$15 billion promised by the World Bank, the European Union, Canada, Japan and other European entities, and US$1 billion from the US.

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Source: TendersInfo (India)

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