WASHINGTON, 1 Dec. The meeting of the Board of Directors of the International monetary Fund (IMF) on the issue of changing the lending rules in allowing the debtor’s default on sovereign debt will be held in early December, said a source close to the Fund.
“Scheduled for early December,” he said in answer to the question of when the Board should discuss the issue of IMF reform. The exact date he did not speak, and added that this is not final and the meeting was postponed.
The idea of this reform at the IMF — more than five years. However, its acceleration right now many experts have attributed to the threat of default of Ukraine on the Russian debt. In the rules and has proposed the approval of its default on sovereign debt, if it in good faith, but unsuccessfully tried to negotiate with creditors.
Russia has stated that it intends to restructure the Ukrainian Eurobonds for three billion dollars, the maturity of which — the end of December 2015. The Russian authorities, it was stressed that Ukraine is not left to them even the offer to hold talks, not to mention the fact that at least one of the rounds of talks was held.
However, Moscow made concessions and offered to over the debt by 1 billion a year, starting in 2016. But the expectation that international institutions such as the IMF, world Bank, ECB or of the United States, the EU guarantee performance. The Ukrainian government has not told neither “Yes” nor “no” on the proposal of the Russian Federation. The IMF earlier said that waiting for the outcome of negotiations of the authorities of the two States.
Nevertheless, if reform of the IMF will be held before the proposed date of default of Ukraine and the Director will agree to apply it to previously signed contracts, Russia will lose the sovereign right of the creditor to stop the country’s finances by the Fund due to the insolvency of the program. Consequently, the debt restructuring negotiations will not be so vital for Ukraine. Therefore, the source did not rule out that the proposal of the Russian Federation may be ignored and the only solution will be a transition case to the international court.