WASHINGTON: Ukraine and the International Monetary Fund (IMF) have reached an agreement on a $5 billion loan deal.

The loan is aimed at helping Ukraine cope with the economic crisis caused by the Coronavirus pandemic.

In a statement, the IMF’s mission chief for Ukraine, Ivanna Vladkova Hollar said “The International Monetary Fund (IMF) staff and the Ukrainian authorities have reached staff-level agreement on economic policies for a new 18-month Stand-By Arrangement (SBA). The new SBA, with a requested access of SDR 3.6 billion (equivalent to US$5 billion), aims to provide balance of payments and budget support to help the authorities address the effects of the COVID-19 shock, while consolidating achievements to date, and moving forward on important structural reforms to reduce key vulnerabilities. This will ensure that Ukraine is well-poised to return to growth and resume broader reform efforts when the crisis ends. The arrangement is also expected to catalyse additional bilateral and multilateral financial support.”

“The agreement is subject to approval by Fund Management and the IMF Executive Board. Board consideration is expected in the coming weeks.”

Hollar added.

The agreement comes after Ukrainian lawmakers approved a banking legislation last week paving the way for international assistance.