Financial support for Kiev

Financial support for Kiev

This was stated by the head of the International Monetary Fund, Christine Lagarde, reports RIA Novosti. The money will be allocated to Kiev within four years.

Lagarde added that the loans will provided by “several sources”. At the same time, the IMF will give Ukraine additional $ 17.5 billion, reports TASS. “The program has not yet approved by the Board. I hope to submit it for approval before the end of February,”- she said.

Earlier, Ukraine Finance Minister Natalia Yaresko expressed complaints about the size of assistance from the international community. She noted that Kiev receives “a tiny amount” as compared with Greece. Yaresko also said that Ukraine is “a good borrower.” In her opinion, investors underestimate the ability of the Ukrainian people to confront the difficulties and “the will to pay their debts.”

As of the end of 2014, the country’s foreign debt reached $ 30 billion. This is a quarter of Ukraine’s GDP. Prime Minister of Ukraine Arseny Yatsenyuk said that in 2015, Kiev must pay off 11 billion dollars of its debt. At the same time foreign exchange reserves of Kiev do not exceed $ 8 billion.

On February 10, The World Bank has allocated to Ukraine 378.4 million dollars for the development of energy networks. Previously, the organization has already provided $ 200 million for the same purpose.

On December 3, The EU has allocated to Ukraine 500 million euros as part of the second macro-financial assistance program (MFA2). This loan was the second and final tranche as part of macro-financial support for Kiev in 2014. On May 20, Ukraine received 100 million euros, on June 17 – 500 million, on November 12 – 260 million. The next tranche is expected in spring of 2015. The European Union is planning to provide additional 250 million euros to Ukraine. The total amount of financial support will amount to 1.61 billion euros.

On April 30, 2014, the IMF approved the stabilization program “stand by”. As part of the program, Kiev should receive $ 17 billion over two years. The first tranche of the program, $3.16 billion, was received by Ukraine in early May 2014. The second tranche of 1.39 billion dollars – in September.

Leave a Reply

Your email address will not be published. Required fields are marked *