The IMF executive board's green light on Wednesday opens the way for an immediate deployment of USD 3.2 billion to Kiev, which faces deep fiscal problems, compounding its political crisis.
Part of a USD 27 billion bailout including the World Bank, European Union and others, the IMF said the rescue plan "aims to restore macroeconomic stability, strengthen economic governance and transparency, and launch sound and sustainable economic growth, while protecting the most vulnerable."

The Fund has warned though that the Ukraine economy faces a 5.0 percent contraction this year, even with the two-year loan program.

Some of the initial disbursements could be turned around to pay off an outstanding USD 2.2 billion bill for natural gas from Russia, which has threatened to cut off fuel supplies to its former Soviet republic.


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