Russian Federation makes proposal to International Monetary Fund on Kyiv’s $3 …
Russian President Vladimir Putin is proposing restructuring the $3 billion debt owed by Ukraine to his country. Mr. Putin said Moscow was ready to share Ukraine-related risks with the worldwide Monetary Fund.
Russian Federation has until now refused to restructure the $3 billion Eurobond on Ukraine’s terms, saying the debt can not be considered commercial.
The dispute has been hampering the IMF’s $17.5-billion rescue plan for Ukraine, which restricts Kyiv’s ability to restructure billions of dollars in debt, including a few held by Moscow.
“We agreed with our partners that we’ll discuss details of our proposals comprehensively in the nearest future”, he added.
He also said that if the Russian proposal is accepted, Russia still expects Ukraine to make a coupon payment for the bond in December.
Ukrainian Deputy Finance Minister Artem Shevalev told reporters, an Ukrinform correspondent reports.
“The Ministry has not received any direct information and has no comment at this time”, the ministry said in an emailed statement. I said that we are prepared for a deeper restructuring.
The political upheaval and war in Ukraine have caused a severe deterioration in government finances as a result of which Ukraine needed a new bail-out from the International Monetary Fund, which insisted on a restructuring of government debts.