The Director of IMF from Russia spoke about reforming aid to Kyiv

WASHINGTON, 13 Nov. The reform of the IMF, which will allow Ukraine to continue financing when a sovereign debt default, you need to dial an ordinary majority in the Board of Directors of the Fund, votes the Russian Federation will not be enough to block this reform, said on the sidelines of the conference, Russia Direct the Director of IMF from Russia Alexei main.

“Here you need a simple majority, Russia has only 2.5%. Therefore, I expect that the reform will be adopted. But yet not one debate on this issue”, — he told, answering a question, could block reform in the IMF to force Ukraine to meet commitments in terms of repayment of Eurobonds purchased by Russia.

Morin noted that Russia in this case has no veto.

Russia refused to restructure the Ukrainian Eurobonds for three billion dollars, the maturity of which — the end of December 2015. The Ukrainian government treats the debt to Russia in three billion dollars as commercial, as it was formed as a result of redemption of bonds to the Irish stock exchange. Ukraine has offered Russia and the other creditors, a credit for 20% less, and some years after completing the program of IMF financing.

Commercial creditors agreed to a partial debt write-off, since taking into account the discount at which the bond is purchased (up to 40%), they find themselves in the black. Meanwhile, Russia has redeemed Eurobonds of Ukraine at full price, low, market, using its own reserves from the national welfare Fund.

Although the IMF States that have not yet decided on the status of Russian debt, according to the rules of the Fund, the instrument does not matter. Status is qualified by the purchaser. Thus, the acceleration of progress in the reform, which was announced five years ago, indirectly proves that the debt of Ukraine to Russia is sovereign. Experts Wall Street Journal had previously agreed that the speeding up of reforms in the IMF associated with the Fund seeking to save Ukraine.

Bloomberg on Tuesday, citing a source reported that Russia is seeking options to block the next tranche of the IMF Ukraine, if that will allow a debt default. However, officials of the Russian Federation spoke about this possibility. So, the Minister of Finance Anton Siluanov didn’t exclude that Russia can exercise its right to sovereign borrowers and to require the Fund to recognize funding programme of Ukraine is untenable.

If the reform will be approved before December and the Director will agree to apply it to previously signed contracts, Russia will lose that right. Another possible solution of the issue, Russian officials called the transfer of the case to the international court.

A revision of the policy of the Fund, according to a statement his representatives, may be considered in the near future the Board of Directors in November (it usually takes place in the third week of the month).