WORLD BANK RESUMES LENDING TO UKRAINE…

The World Bank yesterday approved two loans totaling US$600 million to support two reform programs in Ukraine. One program helps to finance privatization of state enterprises, bankruptcy proceedings, deregulation of business and formation of capital markets. The other program aims to support reform of the public financial system and of the banking sector. The first tranche of the loan is to be disbursed immediately. The remaining two tranches are due in December 1998 and June 1999, respectively, and are conditional on Kyiv’s adherence to the terms and schedule of these programs.

The International Monetary Fund’s recent resumption of lending to Ukraine opened the door to World Bank credits as well. The World Bank has made available to Ukraine approximately US$2.6 billion since the republic joined the Bank in 1992 (World Bank release, September 15; and see the Monitor, September 8, 14).–VS

…BUT RADA TORPEDOES REFORMS.