MOSCOW, September 2 (RIA Novosti) – Ukraine may need an additional international bailout of $19 billion if the civil conflict in the east of the country continues into next year, Reuters reported Tuesday citing the International Monetary Fund’s (IMF) detailed review of its Stand-By Arrangement for Ukraine.
“The IMF warned that if the fighting continued into next year, Ukraine may need as much as $19 billion in additional financing from donors,” the agency said.
The fund said its next disbursement of the $17-billion bailout for Ukraine would be in mid-December and will amount to approximately $2.7 billion.
Ukraine is on the verge of a default, with the country’s authorities trying to rescue its economy with international loans.
Ukraine is expected to receive a total of $27 billion from international donors including the International Monetary Fund (IMF), the World Bank, the United States and the European Union. More than half of the amount is expected to be paid this year.
In May, the IMF approved a $17 billion loan to Ukraine in the form of a two-year stabilization program.
The first tranche of the IMF loan of $3.16 billion was sent to Ukraine in early May.
On Monday, Ukraine received the second installment of financial aid, totaling $1.4 billion.
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.