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IMF officials in Ukraine to discuss rescue loan

IMF officials in Ukraine to discuss rescue loan

Representatives of the International Monetary Fund arrived in Ukraine Wednesday to revive talks over a much-needed $16.4 billion emergency loan, which had been stalled because of policy disagreements.
The IMF withheld a second $1.9 billion installment of the loan in February after the government refused to cut spending ahead of presidential elections later this year.
The IMF initially wanted Ukraine to adopt a balanced budget, but then conceded the government could run a deficit of 3 percent of the economic output, given the continuing economic decline. The IMF expects the economy to contract by at least 6 percent this year, while the World Bank predicts a 9 percent contraction.
Prime Minister Yulia Tymoshenko has agreed to some budget cuts and said she was ready to look for a compromise. Tymoshenko hopes to finance the deficit with loans from G-7 countries, Russia and the World Bank.
"The Ukrainian side is interested in finding a way out of this difficult situation and continue cooperation," said the IMF delegation.
But Tymoshenko's fierce rival President Viktor Yushchenko said Wednesday that the current budget deficit was worth up to 8 percent of the GDP and that more spending cuts were needed.


Updated : 2022-01-23 07:00 GMT+08:00

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