KIEV, April 24 (RIA Novosti) – Hundreds of Ukrainians gathered outside the building of the National Bank in Kiev on Thursday, demanding the cancellation of deals on foreign currency loans to the crisis-hit country, a RIA Novosti correspondent reported.
Demonstrators were holding banners and posters calling for the security of the Ukrainian currency, the hryvnia, which has sharply devalued amid the political crisis in the country, resulting in an increase in payments for borrowers at Ukrainian banks.
The financial crisis in Europe in 2008 led to a similar rapid devaluation of the hryvnia, which also affected Ukrainians who had borrowed in foreign currency. The National Bank of Ukraine later banned issuing foreign currency loans, but borrowers continued paying their loans.
During a visit to Kiev this week, US Vice President Joe Biden said the United States would provide the crisis-hit country with a new $50 million aid package to help with economic and political reforms.
The aid comes on top of a previously announced aid package including $1 billion in loan guarantees and about $11.4 million to promote free, fair, and peaceful elections on May 25.
The United States also committed $8 million in non-lethal military aid to support the Ukrainian army.
Washington has been the driving force behind the IMF working to provide a multi-billion dollar aid package to Ukraine.
In late March the IMF announced a preliminary stabilization agreement for Ukraine amounting to $14-18 billion in loans, with the first tranche of $3 billion to possibly be granted in the coming months. In exchange for financial assistance, Kiev will be advised to increase flexibility of the hryvnia, opt for a gradual increase in utility prices, carry out a pension reform and cut government spending.
