Ukraine to get new IMF loans despite inability to repay private lenders

‘Despite the grievous state of the Ukrainian economy, the IMF said it will continue to lend money to Ukraine, so Kiev can complete economic restructuring.

“In the event that a negotiated settlement with private creditors is not reached and the country determines that it cannot service its debt, the Fund can lend to Ukraine consistent with its Lending-into-Arrears Policy,” IMF Managing Director Christine Lagarde said.

The IMF chief’s comments come as Finance Minister Natalia Yaresko and Ukrainian Prime Minister Arseny Yatseniuk wrapped up their promotional trip to US, which also included pleading with the IMF. Kiev hopes to persuade the international lender to release a $1.7-billion tranche of aid in July, as part of a $40-billion aid package that the IMF and Ukraine’s foreign allies have committed to.’

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