Ukraine risks losing 2nd IMF tranche

Published February 11, 2009

KIEV, Feb 10: Ukraine risks missing out on the second tranche of an IMF loan aimed at helping it overcome the economic crisis as the country has failed to meet its fiscal targets, a presidential aide said on Tuesday.

The International Monetary Fund in November granted Ukraine a $16.4billion (12.8 billion euro) loan aimed at overcoming the crisis and it is now due to extend the second tranche worth $1.9 billion.

“As we are not going to honour the engagements set out in the memorandum it will be very difficult to count on the second tranche of the loan,” said Roman Zhukovsky, head of the economic office of President Viktor Yushchenko.

The IMF is due to decide whether to extend the second tranche on February 15 amid an increasingly diabolical economic situation in Ukraine. —AFP

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