IMF Approves $17 Billion Loan For Ukraine

The International Monetary Fund has approved a $17 billion two-year aid program for Ukraine to help spur its economy and fill its depleted treasury.

The decision by the IMF’s executive board on April 30 includes an immediate disbursement of $3.2 billion to the government in Kyiv.

The $17 billion aid deal will allow Ukraine to also receive more than $10 billion from the World Bank, the European Union, and other donors.

The IMF said the deal “aims to restore macroeconomic stability, strengthen economic governance and transparency, and launch sound and sustainable economic growth, while protecting the most vulnerable [members of society].”

Ukrainian officials have said the economy is likely to contract by 3 percent this year, while the IMF says it could contract by as much as 5 percent.

The government also faces mounting debts to Russia for energy supplies while it also tries to deal with a pro-Russian insurgency in eastern Ukraine.