Ukraine and IMF Have Agreed on Terms of Further Cooperation

KIEV, Ukraine, November 17, 2010 - The Government of Ukraine and the International Monetary Fund
have successfully approved the terms of the Stand-By Agreement continuation,
which was signed in July this year. This was announced by Thanos Arvanitis,
the Head of the latest International Monetary Fund's mission to Ukraine in
his interview to Ukrainian "Radio Svoboda" today.

Yesterday, on November 16, in its official press release the
IMF announced a staff level agreement with Ukraine on the first review of the
lender's $15 billion Stand-By loan. The International Monetary Fund (IMF)
mission, headed by Thanis Arvanitis, visited Kyiv during November 3-15, to
conduct the discussions on the first review under the Stand-By Arrangement
(SBA).

According to Arvanitis, the IMF's Executive Board will
consider the review before the end of the year. The completion of the review
would release SDR 1 billion (about US$1.6 billion), of which US$1 billion
would be provided for budget support.

According to IMF Resident Representative in Ukraine Max Alier,
Ukraine could receive the second tranche under SBA by late 2010. As Mr. Alier
stressed in his speech at the Ukrainian Banking Forum on November 16, "The
government is observing its liabilities to bring order to the fiscal
situation… Fiscal policy should be aimed at cutting borrowing in the medium
term."

The IMF officials also said they were pleased with Ukraine
meeting its liabilities under SBA: "All end-September quantitative
performance criteria were met and steady progress was made on structural
reforms," as it is stressed in IMF's official press release.

The International Monetary Fund approved a 2 1/2-year, $15.2
billion SBA loan program for Ukraine in July 2010. The program's approval was
one of the key factors which allowed the analysts and international rating
agencies to positively upgrade Ukraine's macroeconomic outlook .

In October Fitch Agency announced its forecast for 5% growth
of this year's Ukrainian GDP. A few weeks earlier Moody's Investors Service
had changed its forecast in respect of Ukraine's state obligations rate (B2)
from negative to stable.

For more information, please contact Natalya Shulevska +380633776645 news at wnu-ukraine.com, Project Manager at Worldwide News Ukraine