KEYWORDS: international
importance, Important International institutions,
agencies, GEOPOLITICAL
IMF approves $17 billion bailout for Ukraine amid risks
The International Monetary
Fund's board signed off on a $17 billion two-year aid program for Ukraine on
Wednesday to help the former Soviet republic's economy recover after months of
upheaval as it continues to face geopolitical
uncertainty.
The IMF aid will allow the
immediate disbursement of $3.2 billion to Kiev(CAPITAL OF UKRAINE) and unlock
further credits from other donors of about $15 billion, intended to help
Ukraine stabilize its economy in the middle of its worst civil turmoil since
independence in 1991.
IMF Managing Director
Christine Lagarde admitted the program faced risks, including from the
government's ability to carry out the politically unpopular measures necessary
to get its finances in order.
"In particular,
further escalation of tensions with Russia and unrest in the east of the
country pose a substantial risk to the economic outlook,"
Pro-Moscow separatists seized government offices in more Ukrainian
towns. The unrest in the east follows months of anti-government protests and Russia's
annexation of the Crimea region, which had already pushed Ukraine's economy to
the brink of bankruptcy and a likely economic contraction this year.
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