EU issues biggest bailout for Ukraine

The EU has issued another bailout of $1.8 billion for the Ukrainian government.

The European Commission Vice-President Valdis Dombrovskis claimed that the whole bailout package for Ukraine comprises also $2.5 billion aid from the IMF and $1.5 billion from the EU.

According to Dombrovskis, the money will provide further reforms implementation in Ukraine:

"Helping Ukraine to achieve peace and transform the country into a modern, stable and prosperous economy is one of the most important tasks Europe faces today".

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The first $600 million transfer is expected after the agreement is ratified by the Ukrainian Parliament, he added.

In 2014 and 2015 the Commission gave Ukraine $1.61 billion under two similar Macro-Financial Assistance (MFA) programs.

The 3.41 billion is the largest financial assistance to a non-EU country in such a short time.

The country's total debt to foreign lenders is estimated at about $50 billion, 71 percent of GDP in 2014. In 2015, the debt is going to grow and reach 93 percent of GDP, according to the National Bank of Ukraine. Inflation is to reach 34.5 percent by the end of the year, and the average monthly wage in the country is estimated at $160 .

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