International Monetary Fund (IMF) staff has endorsed a $17 billion loan to Ukraine to help the government pay its debts amid a projected economic contraction of 5% this year, Bloomberg has reported, citing government officials who have seen the recommendations.

The staff's report was delivered to the IMF Executive Board late on April 22, according to the officials, who spoke on condition of anonymity to discuss internal documents. The staff proposed an April 30 board meeting to consider the loan package, they said.

After weeks of talks with the government in Kyiv, IMF staff concluded that Ukraine needs financing from the fund that's at the higher end of the $14 billion to $18 billion range initially announced. An IMF loan would clear the way for additional aid from the European Union, the U.S. and other donors at a time of escalating tensions between Ukraine and Russia.

Conny Lotze, an IMF spokeswoman, declined to comment.

The IMF report describes the economic outlook, financing needs and policy steps Ukraine agreed to take in exchange for the loan. The staff's forecast for a 5% contraction this year is more pessimistic than the government's outlook for a 3% drop in gross domestic product.