Russia, Ukraine Must Hold Direct Talks on Debt Restructuring - IMF

IMF Communications Department Director Gerry Rice said that Russian and Ukrainian authorities should conduct direct discussions on restructure of Ukraine’s debt to Russia.

WASHINGTON (Sputnik) — The International Monetary Fund (IMF) will not get involved in the negotiations between Moscow and Kiev to restructure Ukraine’s debt to Russia, IMF Communications Department Director Gerry Rice said in a briefing on Thursday.

“We expect Russian and Ukrainian authorities to conduct direct discussions on this matter,” Rice stated. “The Fund cannot get involved in the details of the debt restructuring strategy, which must be left to the parties and their legal and financial advisors.”

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

Ukraine debt to Russia amounts to $3 billion in Eurobonds. The debt was secured by the previous government of then-President Viktor Yanukovych in late 2013.

In November, Russian President Vladimir Putin said Moscow was ready to allow Ukraine not to pay back the $3 billion it owes by the ear-end deadline, but to pay $1 billion annually between 2016 and 2018.

Gerry Rice also stated that the IMF board has organized an unofficial meeting to discuss the changing of crediting rules to permit the sovereign debt default of debtors.

I can tell you that the board did meet informally on November 23,” Rice said. “I do not have a date for the second step, a formal board meeting.”