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Deputy Prime Minister Sergei Tigipko on July 28 said that he expects the International Monetary Fund to approve another loan to Ukraine. Vice Prime Minister on Economic Issues Sergiy Tigipko has said he is confident there will be a positive decision from the board of the International Monetary Fund (IMF) on the allocation of a credit to Ukraine.

"I am sure that today the decision of the IMF's board will be positive for us," he told reporters in Kyiv on Wednesday.

Tigipko also said he expected that about 80% of the IMF assets would be used to increase of the forex and gold reserves of the National Bank of Ukraine.

The Ukrainian government also plans to earmark a portion of a $15 billion loan, which it hopes to receive from the International Monetary Fund (IMF), for paying off debt to VTB at the end of the year, Tigipko said in an interview with the newspaper Delo.

The final document on cooperation between Ukraine and the IMF foresees the bulk of the bond will go to replenishing the country's gold and forex reserves, as well as financing the budget deficit.

The government also plans to use UAH 20 billion ($2.5 billion) for recapitalizing domestic banks.

It was earlier reported that Ukraine had received a bridge-loan from VTB at the start of June prior to the placement of sovereign Eurobonds. The 10-year Eurobond issue was also expected to stand at $2 billion. However, after the roadshow for the issue in the first half of July, the Finance Ministry said that it decided against placing Eurobonds noting current sources of financing and the liquidity level.