(AP) The European Commission on Friday suggested lending euro500 billion to Ukraine and euro100 billion Bosnia and Herzegovina as part of International Monetary Fund bailouts to help them cope with the economic crisis.

The loans will need to be approved by the 27 European Union governments and the EU would raise the money by borrowing on the market.

The EU executive said the Ukraine package would be paid out in two installments after the country's government respects IMF recommendations to curb public spending.

Ukraine is already in line for a $16.4 billion rescue loan from the IMF as well as another $1.7 billion from other international lenders to help it pay a massive natural gas bill to Russia and reform its energy sector.

Government finances have been badly affected by a severe downturn that has slashed tax revenue and investment.


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