Ukraine is unable to repay its debt to Russia for Euro binds worth $3 bn without breaching primary terms of the loan, says a statement of the Ukraine’s Finance Ministry.
“Independently on the status, the Euro bonds which are to be paid in December 2015 are Ukraine’s liabilities for which it cannot pay in correspondence with the primary terms without breaching their financial goals set by the IMF Extended Fund Facility Arrangement and its obligations under the contract,” the statement runs. At the same time, “the Ukrainian government ready for further talks with Russia to come to an agreement on restructuring the debt to Russia.”
As EADaily reported earlier, on Dec 16, the IMF board of governors officially recognized Ukraine’s debt to Russia worth $3 bn as a sovereign one, not commercial. Meanwhile, Russian Finance Minister Anton Siluanov said that Moscow is expecting proposals from Kiev on restructuring the debt taking into account the new IMF ruling. Moscow also says that it will sue Ukraine, if Kiev fails to repay the debt by Dec 20.
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