Support The Moscow Times!

IMF Says Undecided Whether Russia's Ukraine Debt Is 'Official'

Ukraine's Finance Minister Natalia Yaresko attends a meeting to report on the work done during the first 100 days of the Ukrainian government in Kiev, March 12, 2015.

The International Monetary Fund has not decided whether Russia's $3 billion holding of Ukrainian debt should be classified as "official" debt, an IMF spokesman said Thursday, taking back an earlier statement.

Ukraine, which recently received a $17.5 billion bailout from the International Monetary Fund, must come up with at least $15.3 billion from sovereign debt restructuring under the conditions of the program. But Russia, which holds a $3 billion Eurobond from Ukraine, has so far refused to participate in the restructuring.

IMF spokesman William Murray earlier on Thursday said Russia's Ukraine Eurobond is held by its sovereign wealth fund, and therefore should be classified as official debt.

But the IMF later amended those comments. The status of Russia's debt could influence how the Eurobond is treated in the Ukrainian government's talks with creditors.

"No determination has been made by the Fund as to the status of this claim," Murray said in reference to Ukraine's Eurobond debt to Russia, according to the later Fund statement.

Countries borrowing money from the IMF are also not allowed to be behind in debt payments due to other governments, Murray said, without specifically commenting on what that means for Ukraine's IMF program. Ukraine's Eurobond from Russia comes due in December.

Russia, which Western countries accuse of military intervention in eastern Ukraine, has suggested its bonds should be classified as sovereign debt and thus subject to the Paris Club of creditor governments, not Kiev's talks with private creditors.

The status of the bonds could prove a stumbling block in Ukraine's discussions with creditors, which it hopes to conclude by June, in time for the next IMF review of its program.

Ukraine's Finance Minister Natalia Yaresko has said Russia's Eurobond should be part of the debt restructuring, and invited Moscow to participate.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more