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IMF money to keep Ukraine stable despite elections: Reuters poll

Reuters  |  KIEV 

By Zinets

(Reuters) - Loans from the will help maintain growth and price stability although overall economic performance will weaken due to expected political upheaval in this year's elections, a monthly poll showed on Tuesday.

Ukrainians will vote in in March and in October.

faces a tough re-election battle and has consistently trailed in the polls. Former has been the early frontrunner and is an of Ukraine's IMF programme.

According to the median forecast of analysts polled by Reuters, Ukraine's will grow 2.9 percent this year compared with 3.2 percent expected for 2018 and 2.5 percent in 2017.

They see inflation slowing to 8.5 percent in 2019 from 10.2 percent expected at the end of 2018 and 13.7 percent in 2017.

Last month secured a new $3.9 billion stand-by agreement with the IMF that also unlocked loans from other international lenders and helped the country build up a foreign currency cushion needed to service foreign debts this year.

In late December received the first tranche of the IMF aid worth of $1.4 billion and 500 million euros of assistance. With the World Bank's guarantees, the government also borrowed 349 million euros from Deutsche

If the IMF programme stays on track, will get a further $2.5 billion from the Fund and more assistance from the EU and the this year.

The central bank's foreign currency reserves are at a four-year high of $20.7 billion, strengthening expectations that the Ukrainian hryvnia would not weaken against the dollar by more than five percent by 2019-end.

Political and economic turmoil in 2014/2015 pulled the hryvnia to 24 per $1 from 8. Since then it has weakened further and was close to 28/$1 last year.

(Editing by and Alison Williams)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, January 08 2019. 21:45 IST