Ukraine in Arabic | IMF to save Ukraine from default
KYIV/Ukraine in Arabic/ Ukraine's delegation chaired by National Bank Governor Valeriya Gontareva and Finance Minister Oleksandr Shlapak on Wednesday will leave for Washington to participate in the annual meetings of the International Monetary Fund (IMF) and the World Bank on October 10-12 in order to engage in the talks with the leadership of these International Finance Organizations, Ukrainian Premier Arseniy Yatsenyuk has said.
"Several tasks [assigned the delegation]: to adapt our program [Stand-By Arrangement] with the International Finance Organizations to day-to-day realities and attract as many additional resources to Ukraine as possible, to be able to start economic development and to go through this extremely difficult period," Yatsenyuk said before the government sitting in Kyiv on Wednesday.
Besides, he said that the European Bank for Reconstruction and Development (EBRD) proposes for the country a simplified procedure of the consideration of the projects. It also foresees financing of natural gas purchase.
Besides, according to Ukrainian PM, Ukrainian government has allocated UAH 1.8 billion to Kyiv, including for gas debt repayment.
"We have allocated UAH 1.8 billion in support of the capital. I am asking the finance minister to allocate [UAH] 835 million to ensure the repayment of Kyiv's debt for the consumption of natural gas," he said.
Yatsenyuk said that UAH 1 billion of this amount was direct assistance to the city to complete debt repayment.
"If there are debts, it is clear that warm water is not supplied in some districts. Accordingly, the government assumed the repayment of part of the debt," he said.
As reported, Fitch Ratings downgraded Kyiv's long-term foreign and local currency Issuer Default Ratings (IDRs) to 'CC' from 'CCC.' The downgrade follows the city's missed payment on October 6, 2014 of a scheduled repayment of UAH 1.125 billion. If Kyiv does not cure the overdue payment on October 9, 2014, Fitch will consider the extension of the bond repayment as a distressed debt exchange (DDE). A DDE will be viewed a 'Restricted Default' and the agency will downgrade Kyiv's national long-term rating and local currency long-term IDR to 'RD' (Restricted Default) and the bond ratings of the affected security to 'D' (Default).