The IMF has recognized «the duty of Yanukovych» official, but for crediting Ukraine will not be affected

The IMF Board of Directors on December 16, recognized the official status of the Russian loan Ukraine $3 billion granted in December 2013 the government of Azarov-Yanukovych.

This was reported in the press release of the IMF published on the website of the organization.

«The Executive Board of the International Monetary Fund decided that the requirement associated with the Eurobond, in the amount of 3 billion USD, which was released on December 24, 2013 and the holder of which is the national welfare Fund of the Russian Federation, is an official requirement from the point of view of the IMF’s policy in respect of overdue debts to official bilateral creditors,» — said in a press release.

However, the press release stressed that «Ukraine currently has no overdue debts to its official creditors.»

The IMF noted that «the bond was purchased by national welfare Fund of the Russian Federation according to the decision of the Government of the Russian Federation for the purpose of rendering assistance to Ukraine».

According to the information of Directors of the IMF, SWFs have acted on behalf of the government of Russia. «Subsequently the official authorities of the Russian Federation, at the request of official authorities of Ukraine, the Euroclear group confirmed that the Eurobond is always 100 percent was owned by the government of the Russian Federation», — stated in the message.

It is noted that the decision was adopted without convening a meeting. The IMF Executive Board takes decisions under its no-objection when the Council comes to the General conclusion that the proposal can be considered without convening a formal meeting.

The current decision of the Executive Board of the IMF will not affect the current program of crediting of Ukraine. Last week the IMF management agreed to change its policy of zero tolerance on arrears to official creditors.

In other words, if Ukraine misses payment on the Russian debt, she will continue to be able to get the support of the IMF.

As reported, Ukraine and the Committee of creditors on August 27, reached agreement on the restructuring of the state debt total volume of 18 billion dollars, which involves a complete write-off 3 billion dollars, deferral of payments on principal in the amount of 8.5 billion USD. for 4 years, and fixed coupon rate on all the bonds at 7.75% per annum.

In the perimeter of the restructuring also included the loan received by Ukraine within the framework of agreements between Russian President Vladimir Putin and the then Ukrainian President Viktor Yanukovych in December 2013. The loan was issued through redemption of Eurobonds of Ukraine at $ 3 billion. through the Irish stock exchange, that equates to commercial, but the Russian side insists that this is an interstate loan because the purchaser of the bonds was a Russian state Fund.

On 14 October, the majority of creditors approved the proposal of Ukraine the terms of the exchange bonds and accepted the terms of the exchange bonds for new securities with maturities from 2019.

The Russian side did not accept the conditions of Ukraine and did not put forward their proposals to resolve the debt issue.

The key creditor of Ukraine international monetary Fund repeatedly urged Kiev and Moscow to start direct negotiations on the debt. On 8 December the international monetary Fund was marcil requirements in its policy of lending to countries with debt problems, including on sovereign debt. According to Bloomberg, the decision of the Fund will allow a number of countries, primarily Ukraine, to continue cooperation with the IMF even if the non-payment of debts, in particular «Russian» debt.

In December, Putin instructed the Minister of Finance Anton Siluanov to sue Ukraine in connection with bad debt in 3 billion dollars.

The head of Ukrainian government Arseniy Yatsenyuk stressed that Ukraine is ready to sue Russia on the issues of debt, to court if they are not resolved.

The IMF has recognized «the duty of Yanukovych» official, but for crediting Ukraine will not be affected 17.12.2015

Декабрь 17th, 2015 by
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