IMF funds will be used to cover budget deficit?

YesterdayHeadofInternational Relations of the National Bank of Ukraine said that the IMF considers possibility of increasing the standby loan amount to cover budget deficit. He also noted that the IMF mission was to leave Ukraine in two day (in a day, as of today). Andrii Parkhomenko: This piece of news raises our confidence that the approval of the extension of the second tranche (USD 1.85 bln) of the IMF loan could come next week. The IMF does not usually finance fiscal shortfalls, but we think that additional USD 1-2 bln could be allocated for this purpose. See our yesterday’s flash note for more details.