IMF announced that $4.5bn would be immediately available as part of the two-year package.

Banking recapitalization, fiscal and incomes policy adjustments, and monetary and exchange rate policy shifts have been included in that plan.

The IMF has also agreed to provide loans to several nations to make them out of economic woes, as Iceland and Hungary have reached agreement with the IMF on loan deals.

According to IMF forecast, Ukraine may fall into recession next year, as its economic output has shrunk by 3%.

IMF deputy managing director Murilo Portugal says: “There is a considerable stress on the Ukrainian economy and especially its banking system is passing through a critical phase.”

“We are hopeful that government and the IMF loan will definitely help to restore financial and macroeconomic stability.” He added.

This loan for Ukraine was agreed at the end of October and it has been fully approved now.

There was a considerable growth in Ukraine’s capital Kiev, and it was mainly due to increasing access to credit and a property boom. But after recent financial turmoil and uncertainty, investors have withdrawn funds.

Ukraine heavily depends on commodities, but there prices have also fallen recently.

“There is a substantial deterioration in Ukraine’s current account outlook, and it’s because of falling prices major export i.e. steel.” Portugal said.

Georgia’s economy is facing some economic worries following last month’s conflict with Russia.

According to some analysts, the loan would help Georgia to overcome the difficulties to attract foreign   investment and selling products abroad. The loan was approved after Nato chief Jaap de Hoop Scheffer visit to Tbilisi.

Jaap condemned Russia’s conduct in the conflict and called for Georgia’s instant integration with Nato.

A third of this loan is being released immediately while the rest of it will come in parts during the next 18 months.

According to David Owen, who is a senior IMF adviser, the funding is higher than normal limits for the fund as the country facing exceptional pressure.

He further said that The Russian incursion hit the Georgia’s growth prospects, but still the economy was recovering quickly.

On Monday, the EU also announced 500m euros to help Georgia’s quick recovery.

EU foreign ministers cleared in Brussels that at least 200 ceasefire monitors will be deployed around Abkhazia and South Ossetia after Russian troop withdrawal that is expected by 10 October.

It has not been cleared yet, the monitors will be allowed to enter the breakaway areas or not as they are full of Russian troops.

Russia launched a counter-attack and ejected Georgian troops from South Ossetia as well as Abkhazia.

Georgia’s economy has gravely suffered after the recent war, key infrastructure including roads and ports have been destroyed by the Russian bombing during the war.

The US Secretary of State Condoleeza Rice has already announced a $1bn aid package in financial assistance to Georgia.

Georgia requests $2bn financial aid from the International community.

It has not yet been cleared how much toll there would be on Georgia‘s economy from the war, but according to many experts it would be quite significant.

Georgia’s Govt. says that there will be 5 percent to 6 percent fall in its economy during this year that is half the rate of expansion that was observed during the last year.

David Owen, who is senior adviser to the IMF’s Middle East and Central Asian division, says, “It wouldn’t be a surprise if Georgia’s annual growth considerably comes down during this year.”

According to the IMF, the loan will be approved by its executive committee and it has been designed to decrease the impact of the war on Georgia’s economy. Before the war, there were forecasts that Georgia’s economy would grow 9 percent during this year.