Government to spend $1.9 b of IMF's third tranche on repayment of foreign debt

The Ukrainian government will spend USD 1.9 billion of a USD 3.3 billion tranche of the International Monetary Fund's loan to the country to repay its foreign debt, Prime Minister Yulia Tymoshenko said at a press conference in Kyiv on Friday.

"The tranche will be USD 3.3 billion. Of this money, exactly USD 1.9 billion will be sent to make payments on the next foreign debts according to schedule that completely removes all risks related to payments [on foreign debts]," she said.

IMF Mission Chief in Ukraine Ceyla Pazarbasioglu said on July 10 that an IMF mission was planning to propose that the IMF Executive Board consider allocating USD 3.3 billion as the third tranche of its stand-by loan to Ukraine.

In November 2008, the IMF approved a two-year loan of USD 16.43 billion to Ukraine and allocated USD 4.5 billion as the first tranche of this loan.

On May 12, 2009, Ukraine received USD 2.8 billion as the second tranche of the fund's loan.

UKRINFORM