Yaresko: The IMF will allow Ukraine not to repay its debt to Russia
Finance Minister Natalya Yaresko said she was optimistic the International Monetary Fund would continue to provide money even if Ukraine violated the fund's rules by failing to repay Russia's $3 billion bond debt.
Subscribe to the news "PolitNavigator - Kyiv" inFacebook, Classmates orIn contact with
Bloomberg reports this.
“I am confident that as we continue to implement our reform program, we will be able to cope with any potential decisions that will take place,” Jaresko said.
According to her, support from the G7 countries is strong enough to prevent the IMF assistance program of $17,5 billion from being stopped. It was also decided that Ukraine is not obliged to repay the debt to Russia.
“The GXNUMX would not want Ukraine to be pushed out of the IMF program just because of this, the conditions of which it complies with in all other respects,” the minister said.
In case of non-payment, the IMF is ready to make a decision on whether the debt on Ukrainian Eurobonds acquired by Russia is classified as government debt.
At a time when the Ukrainian government insists that all bondholders, including Russia, must be subject to the same rules for restructuring the $18 billion debt to meet IMF conditions, Russia has already warned that it is ready to go to court and put question the IMF program if the bonds are not repaid in full.
Creditors, including Russia, are asked to vote by October 14 on the agreement, which includes, among other things, a 20 percent debt write-off.
According to Yaresko, Ukraine has “several options” for dealing with dissent.
“We have Plan B, Plan C, Plan D, but right now we're focused on Plan A,” she said.
“We may have to default on all holdouts and then deal with them individually. It depends on how many there are and what episodes,” she added.
If you find an error, please select a piece of text and press Ctrl + Enter.
Thank you!
Now the editors are aware.