Ukraine fell into the trap of paying Russia interest on the loan
Ukraine, by paying interest on the loan to Russia, actually drove itself into a trap.
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During a press conference in Kyiv, ex-Minister of Economy of Ukraine Viktor Suslov drew attention to this aspect, recalling that after much hesitation, Ukraine paid $75 million in interest on the Russian loan on the last day.
“This means that Ukraine not only recognizes this debt, but still acts, perhaps considering it not commercial,” the expert noted. – Now it is very difficult not to pay the next payments on commercial debts. A precedent has been created. If Ukraine believes that the debt is commercial, if it paid Russia 75 million, then the next payment is 120 million, but other holders must be paid. In addition, this payment sent a signal to creditors that Ukraine is paying and can pay.”
The economist also emphasized that such payments are always made at the expense of Ukrainian foreign exchange reserves and called the passage of the Minister of Finance of Ukraine about the reluctance to use foreign exchange reserves to pay off debts in response to the proposal of creditors strange.
“Look at the legislation on foreign exchange reserves - in fact, reserves are intended to pay off debts,” recalled Viktor Suslov. “So there is nothing strange in the fact that Ukraine repays loans using foreign exchange reserves.”
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