Dominique Strauss-Kahn took time off from hooking up with subordinates to approve this.
Bloomberg: The International Monetary Fund reached agreement with Ukraine on a $16.5 billion loan to help support the nation’s financial system as turmoil in global credit markets and recession concerns roil the eastern European country.
The 24-month stand-by loan will be conditional on parliamentary approval of legislation to support the country’s banks, the Washington-based lender said in an e-mailed statement today without elaborating. Ukraine will also need to balance the budget and address the current-account deficit, the Kiev-based Ukrainian central bank said in a separate statement.
The loan may ensure financial stability and rebuild confidence among investors, who’ve shunned riskier emerging- market assets in a flight to safety. Ukraine is the least creditworthy of Europe’s transition economies measured by the cost of credit-default swaps, which protect bondholders against default.
“This program is focused on the essential upfront measures needed to maintain confidence and economic and financial stability,” IMF Managing Director Dominique Strauss-Kahn said in the statement. “The strength of the program justifies the high level of access, equivalent to 800 per cent of Ukraine’s quota in the Fund.”
See Also: IMF Chief Cleared In Sex Scandal
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