IMF Urges Russia, Ukraine to Discuss Debt Restructuring

According to the International Monetary Fund, Moscow and Kiev need to discuss restructuring Ukraine's debt and find a way to help restore its sustainability.

WASHINGTON (Sputnik) — Russia and Ukraine should discuss possible ways to restructure Kiev’s outstanding $3 billion debt to Moscow, International Monetary Fund (IMF) Communications Director Gerry Rice said in a briefing on Thursday.

"The IMF encourages both sides to engage in constructive discussions on the restructuring of this bond to promote the necessary financing for the program being supported by the IMF in Ukraine, and to help restore debt sustainability," Rice stated.

On October 15, Ukrainian Prime Minister Arseniy Yatsenyuk said Kiev had suggested to Moscow to accept restructuring of the $3 billion debt, which Russia had purchased in Eurobonds in December 2013.

However, Russian Deputy Foreign Minister Vasily Nebenzya said on Friday that Moscow does not have any plans of discussing Ukraine’s outstanding debt.

Kiev stated in August it had reached an agreement with private sector creditors to restructure $18 billion of its debt.

Ukraine’s debt amounts to $70 billion, of which some $40 billion the country owes to international money lenders.