IMF could resume aid to Ukraine in July: spokesman

The disbursement of a USD 1.6 billion tranche of the IMF’s bailout program requires approval by institution’s executive board, which represents its 189 member nations.

[related-post]

Watch Video: What’s making news

“There are some technical issues that we expect to be resolved soon,” Rice told reporters, adding there was no legislation pending that is a condition for the review.

A new disbursement would mark the resumption of the IMF’s USD 17.5 billion bailout approved in 2015. That is part of USD 40 billion global package aimed at helping Ukraine’s leaders along on their westward path after they pulled the ex-Soviet republic out of Russia’s orbit following a revolt in 2014.

Ukraine has only received USD 6.7 billion of the package and has not seen any new disbursements since August 2015. The payouts stalled over Kiev’s resistance to the tough and unpopular reform measures prescribed under the IMF’s program.

Ukrainian lawmakers have recently approved a raft of IMF-backed actions and also confirmed a new government in April that ended months of political gridlock.

The cash-strapped country is slowly returning to economic growth after more than two years of war. In 2015, the economy contracted 9.9 per cent due to the heavy cost of funding the army and the near-paralysis of output in the industrialized eastern region.