The Ministry of Finance of Russia: Kiev has not made payment on the debt, that means default

The Ministry of Finance of Russia: Kiev has not made payment on the debt, that means default


Ukraine has not made payment on a debt of three billion dollars, has not paid a coupon for $ 75 million and is in default, says the Finance Ministry.
MOSCOW, 31 Dec. Ukraine has not made payment on the debt of 3 billion dollars and has not paid a coupon for $ 75 million and is in default, said in a statement, the Ministry of Finance.

“Ukraine has not made payment in the total amount of 3,075 billion US dollars on account of repayment and service of Russian bonds issued during the grace period, which expired on 31 December 2015. Thus, currently, Ukraine is in default on these bonds,” — said in the message of the Ministry of Finance.

In this regard, the Ministry of Finance has initiated legal proceedings in an English court. The client was the company “The Law Debenture Corporation plc”.

“Thus, Ukraine chose to avoid default on its debt obligations than to negotiate in good faith”, — stated in the message.

The Finance Ministry also said that Ukraine has not made any offer of Russia on restructuring of bond debt of $ 3 billion.

“Ukraine has not made any offer arising from the status of bonds as the official of the loan”, — stated in the message of the Ministry.

Thus, Kiev has not responded to the proposal made by the President of the Russian Federation during the meeting of leaders of the countries “Groups of twenty” in Antalya in November 2015, deferment of the repayment of the bonds for a period of up to three years.

“Instead, on its own initiative, Ukraine has included in the terms of issue of new bonds to private creditors during the restructuring, the so-called “most favoured nation”, which actually forbids Ukraine to repay bonds belonging to Russia, or to invite the Russian Federation to other conditions of the restructuring, which would be consistent with the status of Russian as the official bonds of the loan”, — notes the Ministry.

Ukraine has declared a moratorium on payment of debts before the Russian Federation bonds of 3 billion dollars.

“This self-set restriction can’t be used for a sovereign debtor to justify the impossibility of good faith negotiation and, moreover, legitimate grounds to assert that Ukraine is unable to meet its obligations to repay debt to Russia”, — considers the Ministry of Finance of the Russian Federation.

Russia is ready to study any substantial offer from the Ukraine on its debt, the trial does not exclude a possible settlement of the debt, is spoken in the message of the Ministry of Finance of the Russian Federation.

“The Russian Federation has always been willing to consider options for assistance to Ukraine in accordance with the IMF program. Russia intends to carefully examine any substantial offer from Ukraine, and also believes that the initiation of the trial does not exclude a constructive dialogue in order to reach an acceptable settlement of the debt,” according to a statement on the Ministry’s website.

Thus, the Russian side expressed the fear that if Ukraine will not change its position and begin to negotiate in good faith, the Board of Directors of the IMF will have to raise the question of the permissibility of continuing the crediting of Ukraine.

“Under the circumstances, the obvious concern is the contradictory signal that can be sent to all official creditors in the event of Ukraine’s new funding if she has overdue debts in front of Russia”, — stated in the message of the Ministry of Finance.

On the structure of external debt of Ukraine read in the help >>