The Ministry of Finance of the USA hopes that Russia will reconsider its position on the debt of Ukraine

The Ministry of Finance of the USA hopes that Russia will reconsider its position on the debt of Ukraine

WASHINGTON, 11 Nov. The head of U.S. Treasury Jacob Lew expressed hope that Russia will reconsider its position in respect of debt of Ukraine, since it on the one hand it is important to restore its solvency, and the creditor an opportunity to give back.

“I think they could have done to recognize that the restructuring enables Ukraine to return to economic growth. This is critical for Ukraine, which will automatically be able to meet its obligations,” Lew said in an interview to BBC radio on Wednesday.

“I hope that Russia will reconsider the position on the reconstruction of debt,” he added. Lew stressed that fruitful work in Ukraine and Russia on the settlement of disputes and the implementation of the Minsk agreements crucial for both sides, and world geopolitics in General.

Ukraine has the risk to prevent a default on Treasury bonds by Russia at $ 3 billion, the maturity date of which occurs in December. Bloomberg on Tuesday, citing a source reported that Russia is seeking options to block the next tranche of the IMF, if the default will be allowed. However, officials of the Russian Federation spoke about this possibility. So, the Minister of Finance Anton Siluanov didn’t exclude that Russia can exercise its right to sovereign borrowers and to require the Fund to recognize funding programme of Ukraine is untenable.

The Ukrainian government treats the debt to Russia in $ 3 billion as commercial, as it was formed as a result of redemption of bonds to the Irish stock exchange. However, according to the rules of the IMF, the tool in this case is irrelevant. The status of the debt qualifies for the purchaser. Now according to the rules of the Fund, the sovereign debt default stops the programme of assistance for the application of a creditor.

Ukraine actually tries to equate the Russian debt to other commercial debts, which were purchased on the market at a discount up to 40%. The offer from Ukraine, which Russia refuses to discuss it, involves a credit for 20% less, and some years after completing the program of IMF financing. Meanwhile, Russia has bought bonds of Ukraine at full price, low, market, using its own reserves from the national welfare Fund.