The IMF will change its rules to continue lending to Ukraine

The IMF will change its rules to continue lending to Ukraine

Moscow. October 29. Zapadnye of the country are going to change in November, acting at the International monetary Fund (IMF) lending rules to give Ukraine a possibility to receive the next loan tranche, even in the event of a default by Kiev owes the Russian Federation, reports The Wall Street Journal. The Executive Board of the Fund, according to sources, the newspaper may consider the issue in late November.

The current policy of the Fund excludes the possibility of providing further funding member country of the IMF, which is owed to the lender. Under planned changes to the Fund, according to the experts, which leads the newspaper, can make an exception for cases where the creditor conducts unfriendly policy towards the borrower. Since this question does not concern the fundamental principles of the organization, a decision may be adopted by a simple majority of the members of the Council.

Earlier, Prime Minister of Ukraine Arseniy Yatsenyuk said that at the meeting on 14 October private creditors of Ukraine adopted the decision to write off $3 billion and accepted the terms write-off and debt restructuring. Meanwhile, Russia in voting did not participate.

The Russian authorities repeatedly declared that will not participate in Ukraine’s negotiations with private creditors to write off debt, as the debt of Ukraine to Russia and an official decision on its restructuring may not be taken within the private. In addition, Moscow was declared the immutability of its position: the debt must be fully repaid, any restructuring may not be considered.

Kiev and Moscow is ready to sue

However, the Ukrainian side insists that Russia must accept the terms of restructuring approved by the private creditors. In particular, Yatsenyuk said that Ukraine will re-offer of Russia on 29 October at the meeting to accept the General conditions of the restructuring.

“If they believe that they are unique, we are ready for the trial with the Russian Federation,” he said.

About ready to go to court in case of refusal of Ukraine to repay the debt claimed by the Russian side. In particular, the Russian Finance Minister Anton Siluanov said that the Finance Ministry is preparing a plan of action in case of default of Ukraine. “In fact, in late December, if Ukraine does not pay, it will be marked as default, as the default state to another state, despite the effect of the IMF program”, – he said.

The Minister noted that if the debt is repaid, Russia will be treated in accordance with the terms of the issue of these bonds in bankruptcy courts, noting that they were issued under English law.

Orders are not allowed

In addition, Russia intends to supply to the IMF the question of the solvency of the programs of the Fund for Ukraine, because these programs, as the experience of previous similar programs, it is mandatory to provide repayment obligations to official creditors, which is the Russia.

“We know – I talked with colleagues from the IMF, they are preparing changes in their orders, so that you do not include all obligations to official creditors to the financing of support funds and IMF. It is clear that this is done solely in the current situation, to freeze payments to Russia”, – said the Minister.

Siluanov and the Minister of Finance of Ukraine Natalia Jaresko discussed the issue of Ukrainian debt in Lima in the sidelines of the meeting of the IMF and the world Bank on October 9. Kiev reported that Jaresko has provided details about the agreement on debt restructuring achieved with an ad hoc Committee of creditors, and urged Russia to participate in this agreement.