KIEV, July 22 - Prime Minister Arseniy Yatseniuk said Wednesday he expected the International Monetary Fund to make a decision on the disbursal of a second tranche of financial aid worth $1.7 billion on July 31.

Ukraine has so far received $5 billion from the International Monetary Fund, out of an overall pledge of $17.5 billion. To get more, it had to implement reforms including legislative changes to the banking system and energy sector.

Parliament last week passed all the laws needed to receive an installment of more than $3 billion under an IMF-backed bailout program, according to Finance Ministry official Artem Shevalev.

The IMF said in early July that its Ukraine mission had reached agreement with Kiev authorities on the steps needed to release $1.7 billion in much-needed bailout funds to the government.

The mission has been reviewing the country's reform achievements since the IMF awarded Ukraine a new four-year, $17.5 billion support program in March and released the first tranche of funds.

The second fund release will come once an agreed set of actions, which the IMF did not divulge, "are completed and the conditions are in place for staff to assess that public debt is sustainable with high probability and the program is fully financed," the IMF said in a statement.

The release is also subject to approval by IMF management and the executive board, it added.

The IMF originally conditioned its aid program on the country achieving a deal with private creditors that would reduce its debt payment burden by $15 billion over the coming four years.

But with those negotiations still ongoing, the IMF has said it could go ahead and release funds to the country even if Kiev defaults on the private lenders.

The IMF cash is part of a broader $40 billion bailout to shore up Ukraine's economy, which has been pushed close to bankruptcy by years of economic mismanagement and a conflict with pro-Russian separatists. Ukraine is expected to come up with $15 billion of this by restructuring its sovereign and quasi-sovereign debt.

Shevalev said the laws would help unlock financial aid, including $1.7 billion from the IMF, $1 billion from the World Bank, $300 million from Japan and 200 million euros ($218 million) from Germany.

"These funds will be used to support the budget and foreign currency reserves, that is, to strengthen the hryvnia (currency) and for urgent budgetary needs," he said. (rt/ez)