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Financial crisis

IMF announces rescue plans for Ukraine and Hungary

Article published on the 2008-10-27 Latest update 2008-10-28 09:34 TU

IMF headquarters in Washington, DC.(Photo: IMF)

IMF headquarters in Washington, DC.
(Photo: IMF)

The International Monetary Fund (IMF) said on Sunday it would lend 16.5 billion dollars (13.2 billion euros) to Ukraine and would announce a "substantial" package for Hungary in the next few days.

Ukraine has suffered badly from the fall in world prices for steel, which represents between 30 and 40 per cent of its exports.

The Ukraine programme "is focused on the essential upfront measures needed to maintain confidence and economic and financial stability," IMF Director Dominique Strauss-Kahn said.

The news follows a 2.1 billion dollar (1.68 billion euro) loan to Iceland on Friday.  Meanwhile Belarus and Pakistan are also in negotiations with the institution for assistance.

The Washington-based organisation has said it can provide up to 200 billion dollars (161 billion euros) in loans to countries facing financial difficulties.

It has also indicated that it woud attack less conditions to the aid, due to the exceptional nature of the world economic situation.