KIEV, September 3 (RIA Novosti) – Ukraine is expecting to receive $10.7 billion in foreign aid by the end of the year and will use $9.2 billion of it to pay for the country’s debts, Ukrainian Prime Minister Arseniy Yatsenyuk said Wednesday.
“By the end of the year, $10.7 billion will be received and Ukraine will use $9.2 billion of that amount to pay for its debt so as not to default, so that we don’t claim bankruptcy,” Yatsenyuk said during a government meeting.
On August 29, the International Monetary Fund (IMF) approved the disbursement of about $1.39 billion to Ukraine. The organization approved its two-year $17 billion stand-by arrangement on April 30.
To receive the IMF funds in full, Ukraine agreed to a severe austerity program that includes shedding 24,000 government jobs, raising taxes, selling off state assets and withdrawing subsidies on natural gas.
On September 3, Brazilian IMF representative Paulo Nogueira Batista said the success of the $17 billion loan program to Kiev depended on the extent of cooperation between Russia and Ukraine.
Ukraine’s economy is suffering as a result of the crisis in the country, with government forces fighting against independence supporters in eastern Ukraine. Kiev also has a significant gas debt that is estimated to be in excess of $5 billion.
