Without US aid, Ukraine may lose IMF payments, Bloomberg reports.

The publication notes that the continuation of Western funding is a condition of the IMF's $15.6 billion loan program. The allocation of the next tranche of $900 million will be considered this month. So now Ukraine is developing a plan in case the US aid is not unblocked. Among the measures being considered are expanding sales of domestic bonds, raising taxes, and cutting spending.

The article reports that this plan will be proposed to the IMF for further lending next week when the Fund's representatives arrive in Ukraine. Kyiv wants to reassure the IMF that it will be able to service its debts even if its allies do not provide assistance.

The Finance Ministry and the National Bank believe that the IMF board of directors may not approve the next loan disbursement without a budget plan if US funds are still blocked, a Ukrainian official told the publication. 

It should be noted that this year Ukraine was supposed to receive $5.3 billion under the IMF program.

The key source for replacing the US funds will be the expansion of domestic government borrowing. The government believes that highly liquid Ukrainian banks will continue to invest the funds they withhold from lending due to military risks in high-yield government bonds. At least $5 billion in revenue is expected this year.

The government may also raise taxes or cut spending.