It is reported that Ukraine's leaders recently hailed a massive bail out loan by the International Monetary Fund with Me Viktor Yushchenko President of Ukraine saying his country would emerge "stronger and more united".

As per report, reaction was considerably more cautious from analysts, mindful that the IMF now expects Ukraine's economy to contract by 3% next year.

Mr Yushchenko said that a resolute economic and financial policy will allow us not only to resist the global crisis but also to emerge stronger and more united. He said that "this decision is a signal to the international community of an increase in confidence in our country. Ukraine has been among the countries hardest hit by financial turmoil as a plunge in the price of steel, its main export, exacerbates a credit crunch and a sharp fall in stock prices.

Mr Alexander Jolud one of the analyst at the Centre for International Political Studies in Kiev said that the IMF funds will be use to stabilize the national currency, the hryvnia, which has lost 20% of its value in recent weeks, and to refinance struggling banks.

Ms Yulia Tymoshenko PM of Ukraine who is engaged in a bitter power struggle with Mr Yushchenko praised the favorable terms of the loan, which comes at a 4% annual interest rate. She said that "I consider it a great victory because the financial resources we have obtained are the least expensive we could have hoped for. The loan would stabilize completely the financial situation in Ukraine.