IMF approves $16.5 billion loan to Ukraine

Ukraine's Prime Minister Yulia Tymoshenko speaks during her televised
address in Kiev, October 19, 2008. Tymoshenko urged political parties
on Sunday to from a new government, draft a plan to shield Ukraine
from the world financial crisis and abandon an election called by
the country's president. REUTERS/Alexander Prokopenko/Pool (UKRAINE)
From The International Herald Tribune
November 6, 2008

The International Monetary Fund has approved a $16.5 billion loan program for Ukraine that will include changes to monetary and exchange rate policy to ease strains from the global financial crisis.

The IMF, in a statement issued late on Wednesday, said it would immediately disburse $4.5 billion to the government under the two-year loan agreement.

The authorities' program is designed to help stabilize the domestic financial system against a backdrop of global de-leveraging and a domestic crisis of confidence, and to facilitate adjustment of the economy to a large terms-of-trade shock.

Ukraine President Viktor Yushchenko said, "it provided a signal to the international community to boost the rating of trust in our country. The authorities' plan incorporates monetary and exchange rate policy shifts, banking recapitalization, and fiscal and incomes policy adjustments. The economy is getting a powerful resource to develop priority sectors and guarantee the liquidity of the banking system".

While Prime Minister Yulia Tymoshenko, the president's former ally turned rival, described the loan as a "great victory" and would allow Ukraine to stabilize completely the financial situation.

The IMF decision was issued along with forecast indicators predicting that Ukraine would sink into recession next year, with a 3 percent fall against 6 percent growth this year.

Ukraine's central bank has been intervening since early October to lift the hryvnia currency from record lows last week. It began offering buy-sell rates for currencies this week after previously only selling or buying a currency.

ETFs/Stocks :

The Claymore/BNY Mellon Frontier Markets ETF (FRN)

Related Posts :

1. Ukraine and Hungary to get IMF Loan
2. Ukraine's coal miners severe liquidity crunch as local banks panic spreads

Sources :

The International Herald Tribune: IMF approves $16.5 billion loan to Ukraine, November 6, 2008

Please Note!

This is generally never true. Before buying or selling any asset you should do your own research and reach your own conclusion. See my Disclaimer on the bottom for more information.

You are welcome to republish this article, or any portion thereof.
Please, cite the actual/original source. I would be grateful if you could link back.