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Ukraine secures new $3.9 billion IMF deal

Staff Writer |
Ukraine secured a new $3.9 billion stand-by aid agreement with the International Monetary Fund.

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The IMF announced the deal hours after the government decided to raise household gas prices by nearly a quarter, an outstanding IMF requirement, as the prime minister warned the country was headed for default without an IMF deal.

The new agreement would span 14 months and replaces the previous $17.5 billion aid programme that has propped up Ukraine's war-battered economy since 2015.

It is subject to Ukraine passing a 2019 budget in line with the IMF's requirements and the approval of the IMF's executive board, which is expected to take a decision later in the year, the IMF said.

"The new SBA ... will provide an anchor for the authorities' economic policies during 2019," an IMF statement said.

"... it will focus in particular on continuing with fiscal consolidation and reducing inflation, as well as reforms to strengthen tax administration, the financial sector and the energy sector."

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