facebook
twitter
search
search

IMF loans Ukraine $17 billion

By Aileen Graef Follow @AileenGraef Contact the Author   |   May 1, 2014 at 3:47 PM

KIEV, Ukraine, May 1 (UPI) -- The International Military Fund (IMF) has approved a $17 billion dollar loan to Ukraine so the country may avoid default and economic collapse.

The loan will be paid over 2 years in installments as Ukraine continues to meet the requirements and reforms set forth by Director Christine Lagarde and the IMF.

"It [Ukraine] has demonstrated over the last few weeks that it can undertake comprehensive reforms and has actually addressed some of the issues that have been outstanding for a long time," said Lagarde in a press conference. "Urgent action was necessary. Decisive measures were taken by Ukraine and decisive measures have just been taken by the IMF."

Ukraine's economy has fallen into recession with the financial sector under significant pressure as the interim government attempts to stabilize the country.

The initial installment of $3.2 billion will be just enough to cover the $2.2 billion gas bill to Russia and keep the country out of default. The gas debt to Russia has added fuel to the fire as tensions escalate over the presence of pro-Russian separatists in eastern Ukraine and the fear of imminent invasion from the Russian military remains palpable.

Ukraine already owes money to the IMF but the new loan can be used to pay if off.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
Kentucky clerk sued for refusing to issue same-sex marriage licenses
Police arrest N.C. soldier with assault rifle headed to mall photo shoot
Van hauling fireworks catches fire on I-15 near California-Nevada border
North Korean biochemical weapons researcher defects to Europe
Texas man killed in apparent alligator attack