IMF Recognises Debt Of Ukraine To Russia as Sovereign


Translated by Ollie Richardson for Fort Russ

17th December, 2015


The Board of Directors of the International Monetary Fund (IMF) acknowledged in-absentia the debt of Ukraine to Russia $3 billion as sovereign, not commercial, according to RIA Novosti citing the representative of the world Fund.

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“The IMF Executive Board acknowledged the debt of Ukraine to the Russian Federation as sovereign, and not commercial. The decision was made in absentia”, — said the Agency interlocutor.

According to him, the vote on the status of the debt occurred in correspondence via a newsletter from the Directors notification of the draft decision. According to the rules, if some of the Directors are against it, there would have to be a face-to-face meeting. On the day of the decision the Director had not expressed his objection to the decision, thus it is considered to be effective.

The IMF Executive Board on December 4th lifted the ban on the continuation of the program of financing of the country if it defaulted on sovereign debt (debt to official creditor), however, it maintained the priority of redemption of sovereign debt of a commercial nature.

The maturity of the Ukrainian Eurobonds for $3 billion, purchased by Russia in late 2013, comes on December 20th. Russia has previously expressed a willingness to restructure the debt, allowing it to repay one billion in 2016-2018, subject to the provision of guarantees for it from the authorities of the United States or the EU, or one of the international financial institutions.

However, according to Minister of Finance Anton Siluanov, last week, the foreign partners refused to give such guarantees. After that the Russian President Vladimir Putin instructed the Cabinet to sue Ukraine if they will not repay the debt.

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