13:48 12.06.2015

Postponement of term of payments to settle state debt is not enough for Ukraine – Yatseniuk

2 min read
Postponement of term of payments to settle state debt is not enough for Ukraine – Yatseniuk

Ukraine insists on its conditions on restructuring its foreign commercial, debt the size of which is overwhelming for the country which faces a crisis and which is engaged in war, Ukrainian Prime Minister Arseniy Yatseniuk has said.

"The debt burden should be restructured on the acceptable conditions," he said while opening a cabinet meeting on Friday.

He said postponing the terms of payments will not suffice.

As reported, the Ad Hoc Committee of Creditors, which represents Ukraine's international commercial creditors, said that it is ready to hold talks with the Finance Ministry on restructuring the country's foreign debts, however the committee sees an obstacle in stance of the ministry.

"Minister Jaresko has been in possession of a detailed IMF-compliant solution from the Bond Committee for over a month. We are deeply concerned about the stance the Minister is taking, which is not in the interests of Ukraine. We are ready and willing to start talks at any time," the committee said, commenting on the recent statements of Ukrainian Finance Minister Natalie Jaresko in the media.

Jaresko said in Washington that Ukraine insists on the conditions of debt restructuring agreed with the IMF, which include the postponement of the debt and the writing off of a part of the principal debt and the reduction of rates. She said that around 40% of the principal of the debt must be written off.

The Finance Ministry said that the committee’s proposal to offload their sovereign claims to the books of the National Bank of Ukraine is unacceptable as it assumes using the National Bank of Ukraine’s reserves, in clear violation of Ukrainian law, and more generally in clear contradiction with the Central Bank’s best practices.

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