The International Monetary Fund on Monday approved a multi-year US$15.15 billion loan package for Ukraine under the Stand-By-Arrangement program.

The amount is expected to support Ukrainian authorities' economic adjustment and reform program, which includes a comprehensive consolidation strategy to safeguard fiscal sustainability. The Fund's executive board would disburse US$ 1.89 billion immediately.

Ukraine will start fiscal adjustment this year and tighten it in 2011-12 period, backed by robust structural reforms of the pension system, public administration and the tax system.

In its global economic outlook report, IMF projects 3.7% GDP growth for Ukrainian economy this year and a stronger 4.5% expansion next year.

Inflation is expected to ease to 9.8% this year from 15.9% last year. However, the rate will rise to 10.8% next year. Ukraine's unemployment rate will stay at 8.8% this year, unchanged from last year and fall to 7.7% in 2011, according to the lender.

rttnews