Ukraine returns to IMF for further $14.9bn rescue loan
Monday 05 July 2010
Following fast on the declaration of additional help for Hungary, Ukraine – another early victim of the credit crunch – has announced that it too will apply for fresh funding; a loan of $14.9bn to help plug the country's budget deficit and boost investor confidence.
The IMF agreement commits Ukraine to slashing its budget deficit faster than planned – to 3.5 per cent of GDP next year.
Last year the IMF suspended Ukraine's $16.4bn rescue programme because the former administration of President Viktor Yushchenko, who was at odds with his government, reneged on promises of financial restraint. Talks on a new stand-by facility have been prolonged as the IMF urged the government to set more ambitious fiscal tightening targets. The new government of President Viktor Yanukovich adopted the 2010 budget with a deficit target of 5.3 per cent of gross domestic product and said it would reduce the gap by one percentage point a year for the next five years.
Last year the budget deficit stood at 3.9 per cent of GDP but the government increased planned spending by a third this year to help the economy recover and to raise social security payments such as pensions.
The IMF had indicated it wanted Ukraine to set more ambitious targets for cutting the budget deficit, which would probably require unpopular measures such as hiking utilities tariffs and reducing pensions or raising the retirement age.
Analysts say the new deal will help restore investor confidence and give a boost to Ukraine's $1.3bn Eurobond issue planned later this month.
- 1 Notting Hill Carnival: Woman shares selfie after being ‘punched in face for telling man to stop groping her’
- 2 Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
- 3 Oil tanker with $100 million cargo goes missing off Texas coast
- 4 George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
- 5 Medina: Saudis take a bulldozer to Islam's history
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
Oil tanker with $100 million cargo goes missing off Texas coast
George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
Brother and sister, Christopher Buckner and Timothy Savoy, arrested for 'committing incest after watching 'The Notebook''
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- < Previous
- Next >
iJobs Money & Business
£35000 per annum: Harrington Starr: Network Engineer (CCNP, CCNA, Linux, OSPF,...
£50000 per annum: Harrington Starr: DevOps Engineer (Systems Administration, L...
£60000 - £70000 per annum: Harrington Starr: A prestigious leading professiona...
£50000 per annum: Harrington Starr: Financial Technical Consultant (C++, C#, F...