IMF changes lending rules, allowing new Ukraine loan program
The International Monetary Fund has approved changes to its lending rules that allow it to help countries facing extremely high uncertainty.
These changes pave the way to additional financial aid to Ukraine, an IMF press release says.
Changes are applied in situations related to exogenous shocks that are not subject to control by the country's authorities and do not affect its economic policy.
In approving the changes to the financial assurance policy, the executive board noted that implementing a fund-supported program in cases of extremely high uncertainty would require a careful assessment of whether such a plan would be feasible and sound, given its likely risk characteristics.
The Fund has traditionally only lent to countries with a clear debt repayment plan to ensure continued lending to other countries.
Consultations of the IMF on Ukraine will tentatively end this week. Details of the new program may become known from the next.
The IMF is ready to provide significant economic support to Ukraine within the framework of a new comprehensive credit program.
Prime Minister Denys Shmyhal said on Monday that Ukraine expects to receive more than 15 billion dollars in total.
