Kiev is ready to freeze the debt in the event of the failure of negotiations with creditors – RIA Novosti

© AP Photo / Efrem Lukatsky

KIEV, June 16 – RIA Novosti. The head of the Ministry of Finance of Ukraine Natalia Yaresko reiterated that if Kiev will not be able to negotiate with creditors to restructure debt, the government will consider a moratorium on debt payments.

“If we are not able to bring our creditors to the table (talks – Ed.), then obviously we will take into account the lever that you gave us, in particular, to decide – whether to suspend payments or not, “- said Yaresko, speaking in the Verkhovna Rada on Tuesday.

The President of Ukraine Petro Poroshenko in late May signed a law allowing the government of Ukraine to introduce a moratorium on payments on some foreign debt. The list includes such obligations and Eurobonds, Treasury of the Russian Federation. Earlier, Finance Minister Natalia Yaresko stated that Ukraine will have to introduce a moratorium on payments on some foreign debt obligations in the event that an agreement with creditors is reached this summer.

According Yaresko, suspension of debt payments or Do not suspend the program of cooperation with the IMF, and will not have the pressure on the population and the country’s banking system. Finance Minister added that the government daily negotiates with creditors to restructure debt. “The total amount that is subject to the restructuring of more than 23 billion dollars of our foreign bonds”, – the minister added.

Earlier, the Ministry of Finance of Ukraine reported that he failed to reach an agreement with the creditors’ committee on the restructuring of the public debt of the country. The Committee has eurobonds of Ukraine for $ 8.9 billion, total external public debt amounts to 70 billion dollars.

The Board of Directors of the IMF in March approved a new program of financial assistance to Ukraine, Kiev Fund provides for the allocation of 17.5 billion dollars, and all international lenders in four years – $ 40 billion, including $ 15 billion due to debt restructuring. After that the Ukrainian authorities have begun talks with creditors to restructure debt.

How can the IMF to help Ukraine, and that in return require

The new loan program for Ukraine, the IMF will provide the fund $ 17.5 billion, and all international lenders in four years – $ 40 billion, including $ 15 billion due to debt restructuring.
Under the IMF Ukraine should implement economic reforms. IMF experts offer the Ukrainian government to focus on reform of the revenue side of the budget, energy, industry, and education and health.

The Economist Paul Nefidov: “This is a very bitter medication. In the first package of measures, which will be studied before the release of the second tranche will just be very tough reduction of social benefits, reduction of various types of subsidies – the population will definitely feel it. And the company, which enjoyed certain privileges, too, will feel it for yourself when will be introduced hard budget constraints. The IMF is in the package is the motto “cut spending”. Read more & gt; & gt;