The authorities are ready to bankrupt Ukreximbank to please Western creditors
The Minister of Finance of Ukraine, US citizen Natalya Yaresko, asks international creditors to postpone the payment of $23 billion so as not to turn Ukraine into Greece and Argentina, reports Interfax-Ukraine. For this, she is ready to bankrupt the large state-owned bank Ukreximbank, reports FT.
Subscribe to the news "PolitNavigator - Kyiv" in Facebook, Classmates or In contact with
Ukraine calls on creditors to quickly reach an agreement on debt restructuring under the Extended Financing Program with the IMF, since such a solution is mutually beneficial and will avoid the negative experience of Greece and Argentina, said Finance Minister Natalia Yaresko.
Debt restructuring, that is, the transfer of payments with a premium on payments, is a condition for receiving a new tranche from the IMF, without which the country will be forced to declare a sovereign default.
“We will not repeat the mistakes of Greece and Argentina. Debt restructuring is inevitable and cannot be delayed,” said the head of the Ukrainian Ministry of Finance, speaking at the Peterson Institute for International Economics in Washington on Friday.
She recalled that the $40 billion aid package under the four-year EFF program provides for budget savings due to a restructuring of $15,3 billion, without which the program will not work.
The government included in the restructuring, in addition to national debts, Eurobonds of Kyiv, state-owned Oschadbank and Ukreximbank, and Ukrzaliznytsia, however, these borrowers will consult with creditors about the terms of the restructuring of their loans as separate legal entities.
The influential newspaper Financial Times notes that, apparently, for the sake of general restructuring, Natalya Yaresko is ready to default on the second largest state-owned bank in the country, Ukreximbank. “Ukraine intends to tell investors that it will allow a state-owned bank to default (on bonds due April 27) if it fails to reach an agreement with creditors,” the newspaper said. Such actions will obviously lead to a new round of instability in the country's banking and financial sector.
If you find an error, please select a piece of text and press Ctrl + Enter.
Thank you!
Now the editors are aware.