IMF Approves $3.9 Billion in Aid for Ukraine as Debt Pinch Looms

The International Monetary Fund approved a new $3.9 billion bailout program for Ukraine to help stabilize the economy and help the government pay back its debts, according to President Petro Poroshenko, Bloomberg News reported. The board of the Washington-based lender agreed on Tuesday to provide the eastern European country with the first $1.4 billion disbursement. It’s part of the stand-by program which replaces a bailout that suffered long delays as the government failed to implement the reforms necessary to release the cash. The IMF’s decision will help reassure investors in a year in which other emerging markets have been hammered and Ukraine itself has been repeatedly cited as among the most vulnerable. Ukraine is due to pay almost $5 billion to foreign creditors in 2019. The tranche was approved despite Ukraine’s decision in November to impose martial law in some regions after Russia seized three ships and their crews in the Azov Sea. Read more.