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26 окт 2008 20:26:32

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Ukraine set for $16.5bn IMF loan


The International Monetary Fund (IMF) is to offer a $16.5bn (£10bn) loan to Ukraine to help it "maintain confidence and economic and financial stability."

The country has been badly shaken by the global credit crunch, with stock markets and the Ukrainian currency tumbling and banks needing propping up.

Internal political turmoil has also delayed economic development.

Last week the IMF said it was to give Iceland a £2.1bn loan as its banking system came close to collapse.

Hungary, Pakistan and Belarus are also in talks about accessing IMF funding.

"The authorities' program is intended to support Ukraine's return to economic and financial stability, by addressing financial sector liquidity and solvency problems, by smoothing the adjustment to large external shocks and by reducing inflation," said the IMF's managing director Dominique Strauss-Kahn.

"At the same time, it will guard against a deep output decline by insulating household and corporations to the extent possible."
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