Jaresko: a moratorium on debt repayment to Russia will act “before”

Jaresko: a moratorium on debt repayment to Russia will act “before”


KIEV, December 25. The action of the Kiev-imposed moratorium on debt repayment to Russia in the amount of $3 billion will continue either until its restructuring, or until a court decision. This opinion was expressed by the Minister of Finance of Ukraine Natalia Jaresko in an interview to the edition “Business”.

“To solve the issue. Or judicial decision, or not a judicial decision, that is, restructuring”, – said the Minister.

According to the Minister, the recognition of the specified debt IMF official, not commercial, does not change the policy of the Ministry in this matter. “For us it makes no difference what the status of the debt. It’s all Eurobonds. Our hands are tied by IMF – what we can Fund what we can’t. At the time when the IMF will take a decision on the next tranche, they will be watching whether Ukraine fair to the creditors, if we tried to restructure the debt or not”, – said Yaresko.

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The Minister said that Kiev can not offer someone a better restructuring terms than those that are defined “already agreed terms”.

On Friday, December 18, the government of Ukraine introduced a moratorium on the payment of the debt of the Russian Federation. Prime Minister of Ukraine Arseniy Yatsenyuk motivated by the fact that “Russia refused to sign the restructuring agreement” on a par with private creditors. Thus, Ukraine chose to avoid default on its debt obligations than negotiate on the basis of a proposal made by the President of the Russian Federation during the meeting of leaders of the countries “Groups of twenty” in Antalya in November, said the Ministry.

20 December, Ukraine has delayed the payment of the next payment on the debt. If Kiev fails to pay the amount due within the 10-day grace period on 31 December Russia will go to international court to recover these funds by force.

Of the third tranche of the IMF

For Ukraine it is extremely important to obtain from the International monetary Fund (IMF) the third installment in the renewed programme of cooperation, said the head of the Ministry of Finance of Ukraine.

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“It is critical. We had to get a few months ago. We are already significantly late. Critical not only because of the need to replenish reserves of the National Bank. This is also critical due to the fact that this unpredictable – will the budget and the tranche or not – affects the psychology of the people of Ukraine,” she said.

According to the Minister, it also affects the banking system, and investors. “Receiving a tranche of the prerequisites for the American loan of $ 1 billion, are expectations for European credit. This all affects the exchange rate,” Jaresko said.

Earlier, the Ukrainian Parliament adopted a tax reform, and on its basis the state budget for 2016, with the recommendations of the IMF. It was one of the key conditions for granting new tranches.