Ukraine PM calls new debt deal a blow to ‘en­emy’ Rus­sia

The China Post - - INTERNATIONAL -

Ukrainian Prime Min­is­ter Arseniy Yat­senyuk said Thurs­day that the cru­cial debt deal struck be­tween Kiev and its pri­vate cred­i­tors had de­liv­ered a blow to “en­emy” Rus­sia.

“The de­fault that our en­emy was await­ing did not hap­pen,” Yat­senyuk told a gov­ern­ment meet­ing af­ter Ukraine’s big­gest com­mer­cial lenders agreed to a 20-per­cent write-down on the face value of their debt.

Rus­sia had re­fused to join talks on ways Ukraine could save on the re­pay­ment of US$15.3 bil­lion (13.6 bil­lion eu­ros) over the next four years.

The sum is part of a global US$40-bil­lion res­cue pack­age that the In­ter­na­tional Mon­e­tary Fund patched to­gether for the cash­starved for­mer Soviet re­pub­lic in Fe­bru­ary.

Ukraine on De­cem­ber 20 is sched­uled to re­pay the prin­ci­pal of a US$3-bil­lion Eurobond that Rus­sian-backed ex-pres­i­dent Vik­tor Yanukovych is­sued months be­fore his ouster by pro-Euro­pean street protesters and law­mak­ers.

Kiev be­lieves the sum should be treated as a com­mer­cial loan that should be re­struc­tured along the lines of Thurs­day’s agree­ment with Franklin Tem­ple­ton and three other global fi­nan­cial ti­tans.

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