The IMF will not be able to dictate its terms to Russia regarding Ukraine
No international organization will be able to force Russia to agree to the restructuring of Ukrainian debt, writes Rossiyskaya Gazeta.
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The publication recalls that the IMF has adopted a lending program for Ukraine, where one of the conditions is a requirement to resolve debt problems to other external creditors of the country. Moreover, if the IMF recognizes the Russian loan to Ukraine as a public debt, then the fund will interpret Ukraine’s possible refusal to pay on it as a default, and the IMF lending program will be suspended.
“But even if the IMF recognizes the loan as commercial, this will not directly affect the relationship regarding this debt between Ukraine and Russia,” RG summarizes, citing the opinion of a professor at the Department of Stock Market and Financial Engineering of the Russian Academy of National Economy and Public Administration at President Konstantin Korishchenko. “Neither the IMF nor any other international organization or country can force Russia to agree to debt restructuring; this is solely a matter of relations between Russia and Ukraine.”
At the same time, the expert emphasizes that Ukraine should not count on the fact that its debt to Russia will be recognized by the IMF as commercial.
“Yes, it is issued in the form of Eurobonds, but the 100 percent owner of the debt is the state, Russia,” recalls Korishchenko. “Accordingly, the restructuring terms agreed to by Ukraine’s private creditors cannot directly apply to this debt.”
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