The IMF is revising the rules of lending to countries with sovereign debt

WASHINGTON, October 29. /Corr. Andrew Shitov/. The IMF is revising its rules for lending to countries that have sovereign debt. The official representative of the Fund Jerry rice confirmed this, answering questions Corr. at a briefing for journalists. According to him, it can be expected that the IMF Board of Directors will review the issue “in the near future”, although not in the next few days. While the ban on lending to countries with overdue sovereign debt remains in force.

“The question, of course, linked to debt restructuring in Ukraine, said rice. In particular, we are talking about a debt of $3 billion to Russia, Eurobonds. On this occasion I want to first say that Ukraine timely pays on this debt, as with all bonds”.

With regard to the dispute between Moscow and Kiev, “IMF calls on both sides to a constructive dialogue on the restructuring of this debt to provide necessary funding for programs supported by the Foundation, and to help restore debt sustainability” in Ukraine, rice said.

Moscow is convinced that the IMF now consciously reviewing its rules of operation with countries with sovereign debt to help Ukraine to pay the Russian debt. In this regard, the question was raised about whether it is easier to add $3 billion to a rescue program for Ukraine, than to create a dangerous precedent. Asked to clarify whether the IMF in this scenario is at least theoretically possible, rice reiterated the call for “a constructive discussion on this topic by both sides”.

The point is that Kiev believes Russian loan of $3 billion received by the former authorities of the country, commercial and insists on its restructuring. Moscow indicates that the loan was official and privileged, and it requires timely repayment.

For the IMF, the value of the dispute, first, that under current regulations it cannot lend to countries with overdue sovereign debt. Accordingly, if the rules are not changed and Kiev refuses to pay the Russian debt, the Fund will not be able to continue with its current rescue anti-crisis program for Ukraine. To confirm that at the moment this rule is still in force, rice replied in the affirmative.