Lviv – Ukraine today does not require to restructure its sovereign debt thanks to the Stand-By Arrangement (SBA) of the International Monetary Fund (IMF) and financial aid from other international donors, Finance Minister Oleksandr Shlapak said at a video conference with participants of the Lviv financial forum on Thursday 18.
‘Jointly with the IMF we’ve come to the conclusion that Ukraine does not need to speak about the restructuring of the debt,’ he said.
The minister said that on Thursday morning from 8.5 billion Hr to 9 billion Hr and almost $2 billion had been accumulated on the accounts of the government, which allows it be absolutely calm when looking into the future.
‘If the situation worsens, we’ll discuss what to do next. I’m sure that Ukraine will cope with all its liabilities,’ Shlapak said.
As reported, Fitch Ratings on Aug. 22, 2014, downgraded Ukraine’s Long-term local currency Issuer Default Rating (IDR) to ‘CCC’ from ‘B-‘ and affirmed its Long-term foreign currency IDR at ‘CCC’.
Some experts recently said that there is likelihood that the state debt could be restructured due to the armed hostilities in the eastern part of the country, the worsening of the economic situation, the devaluation of the foreign currency and quick growth of the state debt to GDP.
The holders of Ukrainian bonds could lose around 35-50 percent of their invested funds if Ukraine uses the restructuring of the state debt, according to analysts from Goldman Sachs.
