BRUSSELS (AP) – The International Monetary Fund has agreed with Ukraine on a new bailout deal worth 15.5 billion euro ($17.5 billion) that could climb to around $40 billion over the next four years with help from other lenders like Europe and the U.S.
Ukraine has so far received $4.6 billion as part of a $17 billion aid package from the IMF agreed on last year, but that program has run into trouble as the war ravaging the country’s eastern region has weighed on its economic prospects.
Facing bankruptcy, Ukraine last month asked the IMF to replace its program with a new one to restore confidence in its finances.
IMF Managing Director Christine Lagarde said Thursday that “this new program offers an important opportunity for Ukraine to move its economy forward at a critical moment in the country’s history.”
The announcement came just before leaders of Russia, Ukraine, France and Germany emerged from marathon talks to announce a peace deal for eastern Ukraine.