Ukraine Wants a Loan of $1.3 Billion from World Bank

Authorities in Kiev hope to conclude an agreement with World Bank representatives to qualify for a loan of up to 1.3 billion dollars (1 billion euro). Ukraine recently managed to obtain from the IMF a release of two tranche of a loan granted to the country, according to a Ukrainian presidential adviser, says the press agency Thomson Reuters.

Reopening the line of credit from the IMF was seen as a clear signal on the country’s ability to obtain loans and other external sources.

International Monetary Fund temporarily suspended in February loan worth nearly 16.4 billion dollars (12.6 billion euro) to Ukraine, in result of divergent occurred between representatives of the institution and government in Kiev on the budget deficit and reforms necessary for economic recovery.

The Fund representative decided last week to offer Ukraine two tranche worth 2.8 billion dollars (2.1 billion euro) from loan. The granting of the second tranche of credit is conditioned by the results reported in future inspections of the IMF.

“Cooperation with the World Bank takes place in good conditions, and now we carry on the negotiations of two important projects”; said Oleksander Shlapak, principal economic adviser to Ukrainian President Viktor Iuscenko.