"The approval of the SBA enables the immediate disbursement of SDR 1 billion (about US$1.4 billion)," the release said Tuesday.
The IMF said the credit line will "provide an anchor" for Ukrainian authorities to be able to enforce economic policies during 2019 and focus on maintaining financial stability.
The fund and the Ukrainian government reached an agreement on the 14-month loan program back in October, and it was subject to the IMF Executive Board's approval.
Kiev has been receiving loans as part of the IMF’s $17.5-billion Extended Fund Facility (EFF) assistance package. The loans, which are part of a four-year program aimed at reviving the Ukrainian economy, were approved by the IMF back in 2015. So far, Kiev has received four installments of aid totaling $8.7 billion.
The IMF froze the aid payments in April, and the fifth payment was never disbursed because Ukraine had not met all of the fund's requirements, which include establishing an anti-corruption court, regulations on gas pricing and a renewed tax policy.