The Executive Board of the International Monetary Fund (IMF) said on Wednesday that a four-year extension was approved for Ukraine under the Extended Funding Facility.
The board also said a Stand-By Arrangement was canceled by the Ukrainian government.
The extension will allow an immediate disbursement of approximately $5 billion and an additional $2.7 billion for budgeting support.
“Demonstrating strong resolve, Ukraine’s authorities have developed a new program to restore macroeconomic stability and address long-standing structural obstacles to growth, including weak governance," IMF First Deputy Managing Director and Acting Chairman David Lipton said. "The authorities recognize that the resolute implementation of the program is critical to restore confidence and growth, bring inflation to single digits, keep external deficits manageable and replenish international reserves."
Lipton said Ukraine has shown a commitment to the stabilization of the nation's financial system, helping to boost international confidence in the nation's currency. The full arrangement amounts to approximately $17.5 billion.