Russia is exploring the possibility of blocking the further crediting of Ukraine international monetary Fund in the event of a default by Kiev's debt to Moscow, Bloomberg has reported citing sources.
Current IMF rules prohibit lending to countries that have outstanding debt to official creditors. However, the Fund wishes to change those rules. For example, a country is a borrower, even when in default, will be able to continue to receive IMF money, if behaves honestly and is continuing its constructive dialogue with the country-creditor to find a mutually agreeable solution. Russia can dispute the preparedness of Ukraine for constructive talks, said sources, reports " information Agency ". Borrowing countries, based on a common set of rules, are Also required to demonstrate to the IMF to continue to obtain loans that their debt burden is sustainable. Moscow may refuse to assure that Ukraine is in principle capable of servicing the debt to Russia. Moscow, the source said, until not decided on the strategy of their actions on the issue in the IMF. The US and other Western countries, with the overwhelming majority in the IMF, one way or another are able to have a favorable decision through the Executive Board. 30 October reported that the Ukrainian government plans to adopt an opinion on a moratorium on the payment of Russian debt in 3 billion dollars.
On October 26 the Prime Minister of Ukraine Arseniy Yatsenyuk said that if Russia wants Ukraine returned to her at least part of the debt in 3 billion dollars, it has until October 29 to accept the terms of Kiev to its restructuring and partial retirement. According to the Ukrainian Prime Minister, otherwise Moscow will have to go to court. For its part in the Russian Finance Ministry said that the Russian Federation will not take part in the meetings of private creditors of Ukraine on restructuring the debt of Kiev. The head of the Ministry of Finance Anton Siluanov said that the requirements of the Russian capital to Kiev are bound to have a privileged status in comparison with the requirements of the private creditors, because the debt in 3 billion dollars is a sovereign loan. Also, the Finance Minister said that the Russian Federation will take legal action to protect its interests as a creditor, if Ukraine will repay the debt in 3 billion dollars at the beginning of winter. Remember, at the end of summer Ukraine has agreed with creditors about write-off of 3, 6 billion dollars of bond debt totaling about $ 18 billion. While Kiev asked the Russian Federation "to accept the rules of writing off another creditors" to accept a 20 percent debt forgiveness. Russia repeatedly stating the position that to participate in this restructuring has no plans and will demand full repayment of Ukraine's Eurobonds in the beginning of winter this year.