People's choice: a moratorium on the foreign debt will tenderto Ukraine
The government of Ukraine, taking advantage of its right to impose a moratorium on the payment of external debt obligations, under this will declare a technical default of the country, said the leader of the largest in the Verkhovna Rada of the faction "Block of Petro Poroshenko" Yuriy Lutsenko.
Ukraine's Parliament on Tuesday passed the government Law that allows you to suspend payments on restructured their external debt obligations. The document also provides that in the case of the introduction of the Cabinet of Ministers of the moratorium creditors will not be able to pay the judicial recovery of state property. The law still has to sign the head. It is planned that the Document will be valid until 1 July 2016.
"This is a very complicated Document that will give you the opportunity to either come to a consensus with creditors, or enter into technical default. We understand This and enable the government to steer clear of this situation ", - Lutsenko said, speaking in Parliament. According to him, the Parliament decision is adequate given the difficult situation in the economy.
The Cabinet of Ministers of Ukraine the law explained excessively high leverage, too much for being in a difficult situation in the economy. According to the government, it is trying to stimulate foreign private creditors of Ukraine to share the burden and to connect to support the country.
As evidenced by the schedule of the act, in the list of obligations for which has the ability to be a moratorium on payments, and got the issue of Ukrainian Eurobonds for $ 3 billion, bought by Russia at the end of 2013. The Russian side has stated many times that this debt cannot be considered private and, therefore, he does not fall under the ongoing restructuring Ukraine.
Total debt of Ukraine is defined in $ 50 billion or suspected to 70% of GDP, and in 2015, predicted the Central Bank will reach 93% of GDP. One of the largest creditors of Kiev - Russia, and it has repeatedly stated about the fact that he didn't want to make concessions on repayment of loans. Russia expects Ukraine on 20 June of the next coupon payment on a two-year Eurobonds 2013 at 3 billion dollars. Meanwhile, Russia under the terms of the lending has every reason to demand early repayment of the debt, but as long as this does not.