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EMEA Weekly, Week 14‏

Published 03/28/2014, 07:18 AM
Updated 05/14/2017, 06:45 AM

IMF to unlock USD27bn for Ukraine

After several weeks of sessions in March 2014 in Ukraine's capital Kiev, the International Monetary Fund (IMF) has announced that it has achieved a staff level agreement on an economic reform programme, which will unlock USD27bn for Ukraine for the next two years. The IMF will provide USD14-18bn of that amount. First, the agreement must be approved by the IMF's management and executive board. The approval is planned for April.

After the IMF announced the agreement, Ukraine's sovereign bonds gained and yields fell. The EU strongly supports the agreement, saying that its Ukraine aid will await the IMF Board decision in April. Thus, if positive, we may see more funds from the EU further supporting Ukraine's sovereign bonds. However, political risks weigh as presidential elections are due to be held on 25 May 2014.

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