“Why should we do this now that young Ukrainians are dying on the eastern front fighting for European security? I think this is more than enough!” the Premier said.
In early March the IMF Executive Board approved a four-year $17.5 billion financial bailout for Ukraine, with $5 billion for immediate disbursement. All told, Ukraine was promised $40 billion in financial assistance over the same period.
On Tuesday Ukraine’s parliament approved a law granting the government the right to impose moratorium on foreign debt payments. The document, presented by Prime Minister Arseniy Yatsenyuk, was upheld by 256 MPs.
The Premier said Ukraine was to pay $30 bln of foreign debt and $17 bln of domestic debt within four years. He added that the moratorium concerns only private creditors, holding the debt of Ukraine.
Russia expects Ukraine to pay back its debt on $3 bln euro-bonds in December 2015.
Kiev regards its $3 bln eurobonds held by Russia as a private loan and, therefore, subject to the moratorium.
The document, to be effective until July 1, 2016, also contains a provision whereby creditors will not be able to claim state property as compensation if the moratorium goes into effect.
