Ukraine News: IMF Approves Last-Minute $2bn Transfer from Central Bank Reserves
Last-Minute Loan Transfer Approved from IMF-Backed Central Bank Reserves
The International Monetary Fund originally turned down recession-battered Ukraine’s plea for a $2bn emergency loan, but late in December it allowed Kyiv to stay afloat by approving a $2bn transfer to government accounts from IMF-backed central bank reserves to cover external liabilities including Russian gas bills.
Just prior to the last-minute decision, officials said the financially stretched government could employ other options that might allow it to get through the coming months, to help pay gas import bills to Russia’s Gazprom as well as citizens’ pensions and wages. The plan, which proved viable, included IMF authorization for the release of $2bn (€1.4bn, £1.25bn) in funds from Kyiv’s central bank reserves to the government account.
