Ukraine gets first tranche of IMF bailout loan

Kiev, May 7 (IANS) Ukraine has received an initial $3.19 billion of its $17-billion bailout loan from the International Monetary Fund (IMF), the country's central bank said Wednesday.

According to National Bank of Ukraine (NBU) head Stepan Kubiv, about $1 billion from the first tranche would be placed in the NBU's account to boost its weak foreign exchange reserves, Xinhua reported.

The rest would go to the state budget to stabilize the macroeconomic and the financial situation in the East European country, Kubiv said.

On April 30, the IMF approved a two-year, $17-billion loan package to Ukraine to keep the country's ailing economy afloat amid the recent economic and political turbulence.

The Ukrainian economy is facing bankruptcy due to a high budget deficit, huge state debt and low foreign exchange reserves, which dropped in March to $15.086 billion, the lowest on record.

The former Soviet state, which has been plunged into chaos since November 2013 following a government backtrack on European integration, needs the IMF loan to make its debt payments, which stand at $10.8 billion this year.

To obtain the bailout, Ukraine agreed to implement reforms in the energy and financial sectors, strengthen its fiscal policy and improve its business climate.