WASHINGTON The International Monetary Fund (IMF) executive board on Tuesday extended its economic arrangement with Ukraine, allowing the country to receive up to 246 million dollars in additional credit.

The board's fourth review of the economic program in Ukraine found positive growth in the former Soviet republic for the first time since it gained independence from Russia in 1991.

The IMF's First Deputy Managing Director, Stanley Fischer, said there had been a "strong improvement" in the country's fiscal position this year. But he warned that inflation was higher than expected and he said reducing inflation next year will be important to economic stability.

"The Ukrainian authorities should be commended for the recent improvements in economic policy implementation and progress on their reform agenda," Fischer said in a statement.

"Economic performance in 2000 has been encouraging, as real GDP growth is expected to be positive (at 5 percent) for the first time since independence," Fischer said.

(DPA)