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    Kiev to Declare Default if Parliament Rejects Debt Restructuring Proposal

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    If parliament does not accept proposals on restructuring Kiev's debt, a default will be declared, Ukraine's finance minister said.

    KIEV (Sputnik) — Ukraine will be forced to declare a default if its parliament, the Verkhovna Rada, rejects proposals on restructuring parts of the country's public debt, Finance Minister Natalie Jaresko said Wednesday.

    "In this case, a default will be declared," Jaresko told Ukraine's Apostrophe news website.

    On August 28, Kiev and its international creditors agreed to a write-down of 20 percent of Ukraine's foreign debt. The Ukrainian government is expected to present proposals on the debt restructuring to parliament by the end of the week.

    On Sunday, Prime Minister Arseniy Yatsenyuk said it was unlikely that Ukraine would default as the government has a plan to stabilize the country’s economy.

    Since the start of the armed conflict between government forces and independence supporters in the country's southeast in April 2014, Ukraine’s national currency, the hryvnia, has drastically devalued, while the country’s gross domestic product has been continuously decreasing.

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    Tags:
    debt restructuring, default, Ukrainian crisis, Ukrainian Finance Ministry, Verkhovna Rada, Natalie Jaresko, Ukraine
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