12:30 GMT02 June 2020
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    IMF General Counsel Sean Hagan said that the IMF reform will not influence the debt negotiations between Russia and Ukraine.

    WASHINGTON (Sputnik) — The debt negotiations between Russia and Ukraine have no impact on the merit of the International Monetary Fund’s (IMF) default loan reform, IMF General Counsel Sean Hagan told reporters on Thursday.

    “The fact that this reform takes place in the context of a case that illustrates this general weakness, I don’t think in any way undermines the value of the reform or the legitimacy of the reform,” Hagan said in response to a question about Russia’s claims the IMF reform is politically motivated.

    On December 8, the IMF board of directors voted to reform lending policies in order to allow countries to borrow money even if they default on their obligations to bilateral creditors.

    The reform allows the IMF to proceed with Ukraine's bailout program even after a potential default by Kiev on its $3 billion debt to Russia.

    On Tuesday, Russian Finance Minister Anton Siluanov said the IMF’s change of lending policy ahead of Ukraine’s deadline to repay its sovereign debt to Russia raises the question of impartiality of the US-based institution.

    IMF Communications Department Director Gerry Rice has previously stated that the reform is a part of a broader program related to reforming IMF’s lending framework that governs sovereign debt restructuring.


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