Saturday, October 10, 2015

Russia, Ukraine Fail to Agree on Debt Restructuring

  Russian Finance Minister Anton Siluanov and his Ukrainian counterpart Natalie Jaresko have failed to agree on the restructuring of Ukraine’s debt to Russia, which amounts to $3 billion.

"Our colleagues from Ukraine’s finance ministry said that they do not have such funds in their budget and offered that we take part in restructuring along with commercial creditors…we are not a commercial creditor, we are sovereign state, so such conditions are unacceptable for us," Siluanov told journalists after meeting with Jaresko on the sidelines of the International Monetary Fund (IMF) and World Bank summit in Lima, Peru.

  • The Russian finance minister said that Russia insists on Ukraine repaying the debt and added that the two sides will continue talks on the debt issue.

Russia issued a $15-billion loan to Ukraine in December, 2013, having bought $3 billion-worth of Ukraine's Eurobonds. The rest of the loan was cancelled following the regime change that took place in Ukraine in February, 2014.

Ukraine has been increasingly reliant on external help in order to restore its economy, which was significantly weakened by the 2014 change of power and the subsequent outbreak of hostilities in the country’s southeast.

Ukraine’s overall state debt amounts to $70 billion, of which about $40 billion is owed to international money lenders.

In August, Jaresko announced that Kiev had reached an agreement with its private sector creditors to restructure $18 billion of its debt.

A number of lenders have refused to join the debt restructuring agreement, including Russia, which insists that Ukraine repay the $3 billion it owes to Russia in full by the end of 2015.

Russia’s finance minister warned in July that Russia could resolve the issue of Ukraine’s debt repayment through court, if



1 comment:

  1. Russia plans to go to court if Ukraine fails to repay its $3 billion debt by the end of the year, Finance Minister Anton Siluanov has told the Rossiya-24 TV channel...

    "In case the Ukrainian side does not pay the debt owed to us, in fact this will be the default of Ukraine. We will turn to judicial instances as envisaged by the terms for Ukraine’s eurobonds in which we invested state funds. That’s why we will seek Ukraine’s implementation of obligations in late this year," Siluanov said.

    Siluanov earlier said he was against restructuring Ukraine’s debt. "We believe that sovereign debts should be paid in full in due timeframe. We invested $3 billion from the National Wealth Fund that should be returned to Russia in late this year," he stressed.

    Russia needs these funds to implement infrastructure projects, the minister said. "Especially in current conditions when the access of Russian companies to international financial markets has been limited," he said.


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