BRUSSELS, May 20 - The European Commission paid out a first loan tranche of 100 million euros ($137 million) to Ukraine on Tuesday, launching a 1.6 billion euro macro-financial assistance loan program to prop up the beleaguered economy, the EU executive said.

The loans are part of the European Union's 11 billion euro package announced in March, Reuters reported.

Another 500 million euro payment is now being prepared and any further payments will depend on Ukraine meeting policy conditions outlined in an agreement with the International Monetary Fund.