04:51 GMT +316 January 2019
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    Visitors are silhouetted against the logo of the International Monetary Fund at the main venue for the IMF and World Bank annual meeting in Tokyo in this October 10, 2012 file photo.

    IMF to Allocate First Tranche of $3.9Bln Loan Package for Ukraine

    © REUTERS / Kim Kyung-Hoon
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    WASHINGTON (Sputnik) - The International Monetary Fund (IMF) will immediately provide the Ukrainian government with the $1.4 billion tranche from a new loan package worth $3.9 billion, according to the fund’s press release.

    "The approval of the SBA enables the immediate disbursement of SDR 1 billion (about US$1.4 billion)," the release said Tuesday.

    The rest of the financial aid will be available after semi-annuals reviews have been completed, the fund added.

    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.

    READ MORE: US Should Set Up Panel to Investigate Corruption in Ukraine – Ex-Lawmaker

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    loan package, International Monetary Fund, Ukraine
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