Approved the IMF reform, allowing to lend to Ukraine in the default
RIA Novosti, Dec 8 2015
WASHINGTON – The Board of Directors of the IMF approved on Tuesday a reform that allows you to lend to debtors in case of default on sovereign debt, the Director of the IMF from Russia Alexei Moschen told RIA Novosti. He said:
The decision of the Board of Directors allows the Fund under certain conditions to finance the program under the assumption of a default on official debt. I voted against it. About the rest I can’t say due to privacy policies.
According to him, “effective immediately” and will be applied to previously signed contracts. Discussion of this document, many experts have linked with the threat of default of Ukraine on the Russian debt at $3b and the Fund desire to save her. Although the official position of the IMF says that the idea of carrying out this reform the first year. Russia has previously expressed a willingness to restructure the debt of Ukraine at $3b, which the country must pay this month, allowing it to repay £1b in each year 2016-2018, subject to the provision of guarantees for it from Pindostan or the EU, or one of the international financial institutions. This year, Ukraine proposed to pay only the interest. As has explained the assistant to the head of the Ministry of Finance Svetlana Nikitina, Russia sent Ukraine offers debt restructuring: international practice in it should do the borrower who can’t repay the loan on time. As of Dec 1, said Deputy Finance Minister of Russia Sergey Storchak, such a proposal from Ukraine were received. However, Kiev, on the contrary, is waiting for a formal proposal for debt restructuring from Russia. (Kiev responded by publicly demanding a 20% discount, which is what had been granted by the western investors on their debt – RB)
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