IMF Approves 1.5 Billion USD Disbursement for Ukraine

KIEV, Ukraine, December 23, 2010 - The Executive Board of the International Monetary Fund
completed its first overview of the economic performance of Ukraine under the
Stand-By Arrangement. Positive results of the review lead to an immediate
appropriation of a tranche, worth 1.5 billion USD.

"The authorities remain committed to timely implementation of
fiscal, energy, and financial sector reforms that are essential to achieve
program objectives", stated John Lipsky, First Deputy Managing Director and
Acting Chair of the International Monetary Fund (IMF).

IMF resumed its cooperation with Ukraine in July, 2010. At
that time the disbursement of total 15.3 billion USD was approved. The
disbursement was aimed at support of the economic adjustments and reform
program in Ukraine. Ukraine received the first tranche in August, 2010. In
order to be entitled to the disbursement, Ukrainian leadership has adopted
the new Tax code, and working on introducing the pension reform adopting the
state budget with deficit below 3% of the GDP. The substantial part of the
second tranche is meant to cover the budget deficit.

In December, 2010, the Ukrainian parliament adopted a draft
Memorandum to be sent to the IMF. The provisions of the document have not
been made public yet.

In his official statement on the IMF's web-site, John Lipsky
underlined that "longer term fiscal sustainability depends crucially on
structural reforms in the areas of pension, public administration, and
state-owned enterprises. In this regard, the timely approval and
implementation of the pension reform legislation submitted to parliament will
be key".

Acting Chair of the IMF praised Ukraine's recent steps to
strengthen the financial position of Naftogaz, state gas and oil monopoly, on
a way to making the county's energy sector more transparent.

Recently, Ukraine undertook a number of steps aimed at
reforming the country to meet the European standards, namely adopting the new
Tax code, adopting a draft law on pension reform, adopting a draft law on
anticorruption measures, launching administrative reform by optimizing the
executive branch of the state.

For more information, please contact Maryna Khorunzha, +380-509151565, news at wnu-ukraine.com, Project Manager at Worldwide News Ukraine