This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.
You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7692017.stm
The article has changed 7 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| Ukraine set for $16.5bn IMF loan | Ukraine set for $16.5bn IMF loan |
| (20 minutes later) | |
| The International Monetary Fund (IMF) is to offer a $16.5bn (£10.4bn) loan to Ukraine to help it "maintain confidence and economic and financial stability". | |
| The country has been badly shaken by the global credit crunch, with stock markets and the Ukrainian currency tumbling and banks needing propping up. | The country has been badly shaken by the global credit crunch, with stock markets and the Ukrainian currency tumbling and banks needing propping up. |
| Internal political turmoil has also delayed economic development. | Internal political turmoil has also delayed economic development. |
| The loan depends on Ukraine being able to balance its budget and make reforms to its banking sector. | |
| Currency plunge | |
| Last week the IMF said it was to give Iceland a £2.1bn loan as its banking system came close to collapse. | Last week the IMF said it was to give Iceland a £2.1bn loan as its banking system came close to collapse. |
| Hungary, Pakistan and Belarus are also in talks about accessing IMF funding. | Hungary, Pakistan and Belarus are also in talks about accessing IMF funding. |
| "The authorities' program is intended to support Ukraine's return to economic and financial stability, by addressing financial sector liquidity and solvency problems, by smoothing the adjustment to large external shocks and by reducing inflation," said the IMF's managing director Dominique Strauss-Kahn. | "The authorities' program is intended to support Ukraine's return to economic and financial stability, by addressing financial sector liquidity and solvency problems, by smoothing the adjustment to large external shocks and by reducing inflation," said the IMF's managing director Dominique Strauss-Kahn. |
| "At the same time, it will guard against a deep output decline by insulating household and corporations to the extent possible." | "At the same time, it will guard against a deep output decline by insulating household and corporations to the extent possible." |
| Easy credit and a property boom had seen Ukraine's capital Kiev expand rapidly. | Easy credit and a property boom had seen Ukraine's capital Kiev expand rapidly. |
| But the global downturn has seen investors and those willing to offer loans withdraw. | But the global downturn has seen investors and those willing to offer loans withdraw. |
| Ukraine also relies heavily on steel, but prices have collapsed. | Ukraine also relies heavily on steel, but prices have collapsed. |
| And its currency, the hryvnia, has fallen sharply in the past two weeks. | And its currency, the hryvnia, has fallen sharply in the past two weeks. |