Ukraine's
government said that it will not repay any debt owed to Russia, which could
trigger an international court case and jeopardize its IMF "lifeline."
ATP - Ukraine
has officially declined to repay Russia its $3 billion loan, due
on December 20, effectively defaulting on its foreign debt.
Although
the Ukrainian Finance Ministry announced that it would not repay the debt
on Thursday, Prime Minister Arseniy Yatsenyuk reiterated the announcement
on Friday, calling the inability to pay a "moratorium."
Other
than the eventual court case against Ukraine, the deal may jeopardize
the International Monetary Fund's bailout program for Ukraine, which
requires the borrower country to reach a deal "in good faith."
"The Ukrainian government introduces a moratorium today
on the payment of the so-called Russian debt," Yatsenyuk said.
Other
than the $3 billion official debt to Russia, the moratorium includes
$507 million owed by Ukrainian state-owned enterprises to Russian
banks.
Russia
previously said that it would take Ukraine to court if it fails
to pay. Russia's Finance Minister Anton Siluanov said that the IMF's
recognition of Ukraine's debt to Russia as sovereign could help
in court.
Russia
previously proposed a restructuring deal, which Ukraine refused
to consider. Ukraine said that it would not repay the Russian debt because
of the terms of a restructuring settlement with private
No comments:
Post a Comment