arabtoday
Last Updated : GMT 06:22:25
Arab Today, arab today
Arab Today, arab today

Ukraine's PM Arseniy Yatsenyuk:

It may freeze debt payments to fund war

Arab Today, arab today

Arab Today, arab today It may freeze debt payments to fund war

Ukraine's PM Arseniy Yatsenyuk
Kiev - Arab Today

Ukraine's premier warned Friday that Kiev would freeze its debt repayments if no immediate deal was found with private lenders because it had to fund its escalating campaign against pro-Russian fighters.

Prime Minister Arseniy Yatsenyuk said on his return from a crunch visit to Washington that the International Monetary Fund had given his embattled government a few weeks' reprieve to enact laws needed for the release of new loans.

But the Western-backed cabinet leader said the Fund has signaled its readiness to let Ukraine restructure debts at its own pace -- and that interest payments to Western commercial lenders and Russia may stop as early as next week.

"Today, Ukraine spends as much on foreign and domestic debt servicing as it does on defence," Yatsenyuk told a government meeting.

"The budget can no longer afford it -- and not just the budget. The Ukrainian people can no longer live like this," he said.

"We will not take money out of Ukrainians' pockets to pay foreign debts."

An upsurge in fighting that has claimed at least 40 lives since last week has threatened a shaky truce deal the foes and Russia had signed off on under strong EU pressure in February.

Foreign monitors have since accused both sides of returning their heaviest weapons to the front in apparent preparation for a return of full-scale warfare in the 14-month eastern campaign.

- Creditor anxiety -

Growing security concerns have been compounded by seemingly deadlocked talks with foreign creditors who soaked up Ukrainian Eurobonds in far more peaceful times.

Kiev is up against seasoned financial heavyweights such as Franklin Templeton and other titans who believe that Ukraine has the funds stashed away in its central bank to repay its debts in full.
Ukraine's Finance Minister Natalie Jaresko has firmly refused to do so -- a position that has left the private lender increasingly anxious and Russia visibly irate.

"We are deeply concerned about the stance (Jaresko) is taking, which is not in the interests of Ukraine," Kiev's four biggest commercial lenders warned in a joint statement Thursday.

And Russia said it may ask the International Court of Justice in The Hague to declare Ukraine in default if it fails to make a scheduled $75-million interest payment on June 20.

Jaresko and Yatsenyuk mainly want to see the IMF back the quick release of a $1.7-billion loan that forms part of a $40-billion package the Fund and Ukraine's foreign allies have put together for the coming four years.

The Fund's board had been due to discuss Ukraine by the end of the month and initially set a debt restructuring deal as one of its main conditions.

That tough stance has since softened. The Fund's second in command said Kiev might be able to sneak through a loophole "called lending into arrears" that allows IMF payments to countries in technical default.

- IMF leniency -

But Yatsenyuk's team had thus far been unable to ram through parliament three vital pieces of legislation the Fund still wants to see before parcelling out the remainder of its slice of the global assistance deal.
One demands broader central bank independence. The other two aim to streamline the inefficient energy sector and clean up the financial mayhem reigning in Ukraine's cash-draining state oil and gas firm.

Ukraine's parliament is expected to debate all three measures next week.

Yatsenyuk said the IMF would now wait until July before tackling the tricky Ukrainian loan.

"We expect the (IMF) board to meet in July," he told cabinet members.

"So, all the preliminary conditions have to be agreed and approved by July."
Source: AFP

 

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today it may freeze debt payments to fund war Arab Today, arab today it may freeze debt payments to fund war

 



Arab Today, arab today
Arab Today, arab today Adidas Originals ‘reinterpreted’

GMT 14:52 2016 Thursday ,01 December

Adidas Originals ‘reinterpreted’
Arab Today, arab today Ajman Tourism launches time capsule

GMT 13:17 2016 Friday ,25 November

Ajman Tourism launches time capsule
Arab Today, arab today Paris's matchbox apartments

GMT 10:37 2016 Saturday ,24 September

Paris's matchbox apartments
Arab Today, arab today US-led coalition admits 54 deaths

GMT 08:47 2016 Friday ,02 December

US-led coalition admits 54 deaths
Arab Today, arab today French satire mag hits Germany

GMT 09:52 2016 Thursday ,01 December

French satire mag hits Germany

GMT 12:11 2016 Friday ,02 December

To step aside, stay as chairman

GMT 10:49 2016 Tuesday ,29 November

Trump, Brexit causing uncertainty

GMT 05:57 2016 Saturday ,26 November

Plan to save Saudi construction firm

GMT 16:54 2016 Wednesday ,23 November

Iraq to up crude output because gap

GMT 15:26 2016 Tuesday ,22 November

Russia ready to freeze production

GMT 14:19 2016 Tuesday ,22 November

PM May seeks to soothe Brexit fears at business summit

GMT 21:32 2016 Monday ,21 November

Sisi visit aims cooperation with Portugal
View News in Arabic - Business: حوارات وتقارير
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Dino-killing crater shows clues

GMT 14:43 2016 Thursday ,24 November

Dino-killing crater shows clues
Arab Today, arab today Punk memorabilia torched

GMT 13:52 2016 Monday ,28 November

Punk memorabilia torched
Arab Today, arab today Green groups pressure Spain

GMT 13:01 2016 Thursday ,01 December

Green groups pressure Spain
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Hyundai allows Saudi journalists

GMT 15:14 2016 Thursday ,01 December

Hyundai allows Saudi journalists
Arab Today, arab today Latest Infiniti QX to compete

GMT 13:16 2016 Saturday ,26 November

Latest Infiniti QX to compete
Arab Today, arab today To find German funny bone

GMT 12:45 2016 Tuesday ,29 November

To find German funny bone
Arab Today, arab today Car manufacturers to power Europe

GMT 13:01 2016 Tuesday ,29 November

Car manufacturers to power Europe

GMT 08:49 2016 Monday ,28 November

Israeli Arab rapper's music provokes

GMT 11:55 2016 Monday ,21 November

Amal Al-Qubaisi attends reception

GMT 04:15 2016 Thursday ,30 June

World's largest uncut diamond fails

GMT 12:39 2016 Friday ,25 November

Arctic 9-12C above normal

GMT 15:59 2015 Wednesday ,27 May

Seoul elevates gardening to high art

GMT 12:39 2016 Saturday ,26 November

Skin patch could help kids

GMT 09:35 2016 Saturday ,19 November

Hyperloop One settles co-founder

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 09:53 2016 Sunday ,15 May

OMEGA official timekeepers
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Powered and Developed by FilmMatters

Copyright © 2016 Arabtoday

Developed by FilmMatters

© 2016 Arabtoday

arabtoday arabtoday arabtoday
arabtoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabtoday, Arabtoday, Arabtoday