Ukrainian President Petro Poroshenko has signed a law allowing Ukraine to impose a moratorium on repayment of its foreign debt until at least July 2016, a press release on Poroshenko’s official website said Thursday.
Ukrainians walking past candles in the shape of the national emblem of Ukraine on Independence Square in Kiev, Ukraine
Russia to Sue Ukraine if Moratorium on Foreign Debt Repayments Adopted
KIEV (Sputnik) — The Ukrainian parliament approved the bill, which could affect repayment of the country’s $3-billion debt to Russia on May 19.
Russian President Vladimir Putin said earlier the bill de facto was an announcement of a default, casting a negative light on the professionalism of Ukraine’s leadership.
Moreover, Russian Finance Minister Anton Siluanov said that Moscow would turn to an international court if the Ukrainian president signed a moratorium on the repayment of foreign debt.
A man stands next to an advertising placard showing British pounds, US dollars and Ukrainian hryvnia banknotes in the Ukrainian capital Kiev
Kiev’s Foreign Debt Repayment Moratorium De Facto Announces Default – Putin
Ukraine’s total debt is estimated at about $50 billion, of which $30 billion are external and $17 billion internal debts, according to Ukrainian Prime Minister Arseniy Yatsenyuk.
Yatsenyuk said that the suspension of payments could only relate to private loans, but Ukraine considered its $3-billion debt to Russia also as a private one, a position Moscow totally disagreed with.
Kiev has received several aid packages from international financial institutions, including the IMF, which has pledged to transfer $17.5 billion to the country over the next four years, with the first $5-billion installment being received.