Reduction of coupon, principal of debt is obligatory condition for restructuring – Jaresko
Ukraine insists on writing off a part of its foreign commercial debt and the reduction of the cost of its servicing, as the debt burden is extremely heavy for Ukraine and its people, taking into account the economic problems and tasks the country currently faces, Finance Minister of Ukraine Natalie Jaresko has said while commenting on the adoption of the law on the government's right to impose a moratorium on the payment of Ukraine's external debts.
"Any deal with our international commercial creditors should include the combination of the prolongation of the term of payment and the reduction of both the coupon and the principal of the debt," she wrote on her Facebook page.
She said that the law on the moratorium is an important tool in protecting the interests of Ukrainian citizens who besr a crushing burden right now.
"Any actions taken under the law on the moratorium would not influence our internal liabilities, liabilities of state-run banks or Ukrzaliznytsia. Our government is confident as earlier that the decision on restructuring of the debt could be found," she said.
The ministry said that according to the four-year Extended Fund Facility (EFF) with the International Monetary Fund (IMF) the restructuring of the debt is to ensure the fulfillment of three goals: saving on foreign payments for state debts secured by the state and the debts public sector companies worth some $15.3 billion during the implementation of the IMF's program; the bringing of the ratio of the state debt to GDP at no higher than 71% of GDP by 2020 and supporting the general needs in financing of the national budget on debt transactions at 10% of GDP on average (no more than 12% of GDP a year) in 2019-2015.
