IMF urges Russia and Ukraine to talk on debt restructuring

Nov 05, 2015 The International Monetary Fund recently urged Russia and Ukraine to participate in the $3 billion debt restructuring discussion. The international lender however said it was discussing reforms that might allow continued support for Ukraine.

Ukraine has held several restructuring talks with private creditors. However Russia has refused to participate, arguing that the $3 billion Ukrainian Eurobond should be classified as an official intergovernmental debt.

Speaking at a media conference, IMF communications director Gerry Rice said:

“The IMF encourages both sides to engage in constructive discussions on the restructuring of this bond to promote the necessary financing for the programme being supported by the IMF in Ukraine and to help restore debt sustainability,”

The current IMF policy prohibits the Fund from lending to a country that goes into arrears on official debt, but Mr Rice added that the board could soon review the policy.

“It includes discussion of reforms that would allow the fund to lend in the presence of arrears to official bilateral creditors in carefully circumscribed circumstances,”