The official position of the Fund States that the idea of conducting this reform is not the first year, but many experts attribute to the forthcoming discussions with the threat of default of Ukraine on the Russian debt at $ 3 billion and a commitment of the IMF to save her.
WASHINGTON, 8 Dec. The Board of Directors of the International monetary Fund (IMF) will discuss on Tuesday the issue of changing the rules of lending organization borrowers who default on sovereign debt, the agenda for the meeting, posted on its website.
The discussion right now many experts have attributed to the threat of default of Ukraine on the Russian debt at $ 3 billion and the Fund desire to save her. Although the official position of the IMF says that the idea of carrying out this reform – the first year.
Russia has stated that it intends to restructure the Ukrainian Eurobonds for three billion dollars, the maturity of which — the end of December 2015. Therefore, the rules proposed to make approval of its default on sovereign debt, if it in good faith, but unsuccessfully tried to negotiate with creditors.
The Russian government stressed that Ukraine did not come out to them, even with an offer to negotiate, not to mention the fact that at least one of the rounds of talks was held.
However, despite this, 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, the US or the EU guarantee performance. On Saturday the Russian Finance Ministry said that the United States refused to give guarantees on this debt.
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.
However, if the 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 of the Fund has not excluded earlier that the proposal of the Russian Federation may be ignored and the only solution will be a transition case to the international court.
However, as previously stated the Deputy Minister of Finance Sergei Storchak, the beginning of judicial procedures debt of Ukraine to Russia may significantly complicate the return of Kiev to the international financial market borrowings.