Abu Dhabi


New York

Fri, 24 Jan 2020 03:00 GMT

Ukraine Secures New $3.9 Billion IMF Deal After Gas Price Hike


7Dnews London - AFP

Sat, 20 Oct 2018 22:20 GMT

The International Monetary Fund said on Friday it had struck an agreement with Ukraine to give it a new 14-month loan of up to $3.9 billion, reports AFP.

"This agreement will replace the agreement approved in March 2015 which was supposed to end in March 2019." 

The IMF reiterated its commitment to "continue to assist Ukraine in achieving stronger and long lasting economic growth."

The agreement still needs to be ratified by the IMF Management Committee later in the year after the approval of the Kiev authorities on the budget of 2019. In addition, the fund needs to be consistent with the recommendations of the International Monetary Fund" according to IMF statement

In exchange for assistance, the IMF asked Ukraine to raise the price of selling gas to consumers to the market. An agreement was reached in 2016 but the Kiev authorities were reluctant to apply it.

Ukrainian Prime Minister Volodymyr Groysman said his country's authorities had finally been able, thanks to "unimaginable efforts," to reach a settlement with the IMF, saying that gas prices would be raised to 23.5 percent, starting from November 1, 2018.