The financial crisis in the banking sector grew to engulf entire nations over the weekend as Hungary and Ukraine followed Iceland in applying for emergency loans from the International Monetary Fund (IMF).
In a statement, the organization - known as the lender of last resort - confirmed it has reached a "tentative agreement" with the Ukrainian government to lend the country $16.5 billion in order to tackle a "series of economic problems tied to the international financial turmoil".
These include a collapse in steel prices that had left the former Soviet republic in danger of being unable to refinance its debt.
In addition, the IMF said it has reached broad consensus with Hungary on a set of policies designed to increase the nation's near-term economic stability. Details of a funding package are set to be revealed within days, it added.
Both deals come after the IMF reached an outline deal with Iceland for a loan of $2.1 billion to support an economy recovery program brought in after the country's banking system went into near-meltdown.
The IMF comprises 185 member countries with a combined lending capacity of around $200 billion.
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