IMF, US Approve Loans Worth Billions for Ukraine

IMF, US Approve Loans Worth Billions for Ukraine

Ukraine will receive a $14-18 billion from the International Monetary Fund (IMF) and credits that will reach $27 billion over two years. The money will help Ukraine pay off loans and debts resulting from ousted Russia-backed president Viktor Yanukovych’s administration. From Reuters:

“The mission has reached a staff-level agreement with the authorities of Ukraine on an economic reform program that can be supported by a two-year Stand-By Arrangement (SBA) with the IMF,” the IMF said in a statement.

“The financial support from the broader international community that the program will unlock amounts to $27 billion over the next two years. Of this, assistance from the IMF will range between $14-18 billion, with the precise amount to be determined once all bilateral and multilateral support is accounted for.”

“Following the intense economic and political turbulence of recent months, Ukraine has achieved some stability, but faces difficult challenges,” the IMF statement said.

Yanukovych was thrown out on February 22 and Parliament approved a new cabinet on February 27. New Prime Minister Arseniy Yatsenyuk told the government that Yanukovych robbed Ukraine. He said there is over $70 billion missing from Ukraine’s accounts. The money was intended for the state.

President Obama said he is pleased with the bailout.

“This significant support will help stabilise the economy and meet the needs of Ukrainian people over the long term because it provides the prospect for true growth,” Obama said at a joint press conference with Italian Prime Minister Matteo Renzi.

The House of Representatives and Senate both passed bills that would provide $1 billion in aid to Ukraine. The Senate bill also included punishments towards Russians for their aggression towards Ukraine. After Moscow annexed Crimea from Ukraine, Obama passed harsh sanctions against those in President Vladimir Putin’s inner circle and his preferred bank.