Before it became known that the Board of Directors of the International monetary Fund (IMF) approved a reform that allow the Fund to lend to debtors, even in case of default on sovereign debt.
MOSCOW, 9 Dec. Reform of the International monetary Fund (IMF), which enables the Fund to continue lending to Ukraine, and after the default on sovereign debt, is the political, the chances of a return by Russia of the Ukrainian debt in the foreseeable future are slim, says the Professor of political theory at MGIMO (U) MFA of Russia Kirill Koktysh.
On Tuesday, the Board of Directors of the International monetary Fund (IMF) approved a reform that allow the Fund to lend to debtors, even in case of default on sovereign debt. According to the Director in IMF from Russia Alexei Magina, the decision took effect immediately, it will be applied to contracts concluded previously. Discussion of this document, many experts have linked with the threat of default of Ukraine on the Russian debt at $ 3 billion, which the country must pay in December of the current year.
Russia has previously expressed a willingness to restructure the debt of Ukraine, allowing it to repay one billion in 2016-2018, subject to the provision of guarantees for it from the authorities of the United States or the EU, or one of the international financial institutions. The United States refused to provide such guarantees.
The expert believes that the decision of the IMF to carry out such a reform is political. According to him, this decision is contrary to economic logic and undermines the legitimacy of the IMF.
“But apparently, the American leadership today does not care. It turns out long-term strategy and long-term rules of the game being sacrificed for the immediate need,” — says Koktysh.
“It turns out a funny thing: it turns out cheaper to reform the Institute, to change the rules of the game, not much changed in the last 50 years, even more than to meet the wishes of (President Vladimir) Putin and to give guarantees under Ukrainian debt,” — explains the scientist.
According to Koktysh, USA at the same time “actually disavowed his own statement that the Ukrainian economy is promising, growing and so on, not wishing to issue guarantees under the loan”.
Russia’s prospects for repayment of the Ukrainian debt in the light of the adopted IMF decision, the expert evaluates extremely skeptical. “I think that it can take a long time. It is clear that the leadership of Ukraine is absolutely not the burning desire that debt to pay,” he said.
“You know, holders of tsarist debt too early or arrived late, after 70 years,” said Koktysh.