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Ukraine imposes moratorium on ‘Yanukovych’s debt’ repayment – Yatsenyuk

The suspension would stay in place “until the acceptance of our restructuring proposals or the adoption of the relevant court decision”, Yatsenyuk said.

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In August, the Ukrainian cabinet and a group of its other worldwide creditors have reached an agreement, which envisages a 20-percent write-off of 15 billion USA dollars of Kiev’s foreign debts and a 4-year extension of the loan repayment period. On Friday the International Monetary Fund warned that the programme was under threat from apparent rejection by parliament of critical tax amendments and the draft 2016 budget.


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Russian President Vladimir Putin last week ordered his government to sue Ukraine if it defaults on the bond, after Moscow said that Kiev has rejected its offers of debt restructuring.

Ukraine’s moratorium on the Russian bond is unlikely to derail a bailout from the IMF, which recently adjusted its lending policy to allow participating countries to continue receiving funds even if they are behind on repaying sovereign loans.

The sanctions were imposed a year ago in response to the annexation of the Crimean Peninsula in Ukraine by Russia and the Kremlin support support for pro-Russian rebels in eastern Ukraine. But Russia argued the debt was sovereign, despite its unusual Eurobond form, and proposed its own repayment terms.

The Finance Ministry sounded a more conciliatory note, saying in a statement: “Ukraine remains committed…to negotiating in good faith a consensual restructuring of the December 2015 Eurobonds”.

Kiev has been trying to give a political dimension to the debt, suggesting that Moscow bought Ukrainian bonds in December 2013 in what it calls an act of bribery by the then president, a close ally of Russian Federation.

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On Wednesday, Russia said it would suspend a trade pact with Ukraine that would exclude the country from a free trade zone that includes former Soviet countries from 1 January.

Ukraine Imposes Moratorium On Repayment Of $3B Loan To Russia