Ukraine Expects $3.3 Billion in Next Tranche of IMF Loan

The IMF mission in Ukraine will recommend that the Fund grant the third tranche of an existing loan that will benefit the country’s struggling economy. The tranche amounts to $3.3 billion, out of a total loan amount of $16.4 billion.

The recommendation was made after the government in Kiev promised to reduce spending in the next period, writes Bloomberg News. “We managed to reach an agreement,” said Ceila Pazarbasioglu, IMF mission chief in Kiev. “Ukraine has met all quantitative criteria, including the international reserves, and made real progress in terms of strengthening the banking system.”

A loan from the International Monetary Fund for Ukraine, with which to pay debts to Russia, is the only solution to avoid a new crisis of gas, in conditions in which the European Union has already announced that he has no money to help former socialist republic, badly affected by the financial crisis.

Ukraine needs 4 billion dollars (3 billion euro ) for the storage and purchase of gas from Russia for the winter.