Kiev, Nov 24 (IANS): Ukrainian Prime Minister Denys Shmyhal has welcomed the decision of the International Monetary Fund's (IMF) Executive Board to approve the second tranche of about $700 million for Kiev, the Ukrainian government press service said.

In a statement posted on the government website on Tuesday, Shmyhal said that the fresh disbursement demonstrates the progress Ukraine has made in pursuing a policy of reforms, Xinhua news agency reported.

He noted that the funds will be directed to support the stability of Ukraine's financial system and combat the Covid-19 pandemic.

On Monday, the IMF completed the first review of Ukraine's economic performance under the 18-month Stand-By Arrangement (SBA), paving the way for Kiev to obtain the second tranche from the $5-billion program.

The global lender also approved an extension of the SBA, which was due to expire in December this year, till the end of June 2022.

Ukraine secured the SBA in June 2020. Since then, the Eastern European country has received only the first tranche from the program worth $2.1 billion.