Wednesday, May 20, 2015

Russia will go to court if Ukraine refuses to pay the debt – TVNZ

At the weekly meeting of the president with the Government were listed on the agenda for discussion on the budget for 2015, but most of the “operational discussions” took the situation in Ukraine. Economic Development Minister Alexei Ulyukayev has returned the day before from Brussels, where there were negotiations over the Association Agreement between Ukraine and the European Union.

– We have agreed with our partners that the Association Agreement with Ukraine the EU will be a moratorium, it will not be effective until January 1, 2016, and during this time will be held negotiations on the settlement of all disputes, – Putin said. – Unfortunately, until now, these negotiations have not started.

– You could say that there is a sense of cautious optimism – tried to raise the degree Ulyukayev. – It seems that the ice was broken, in the sense that we have begun to listen and hear. Although generally speaking, it’s been half of the 15 month break, which we have agreed. And she did not go very productive, unfortunately.

The Minister said that Russia has made it clear – it has reason to already introduce retaliatory measures against Ukraine on MFN.

– Our Ukrainian colleagues have policies latency implementation of certain provisions of the agreement, which is contrary to our September an agreement, – said Ulyukayev. – We have not raised the issue of the extension of the 15-month break, because it is simply a waste of time because we do not need, we need to achieve results either in fact we have heard and we have suits us legally binding documents, or we will be forced to act.

– The next meeting when the appointed you? – Putin said.

– The date is not determined, it is expected after experts will present its report, set a date for the next political event.

– Our goal is to find solutions, acceptable to Russia – asked the President to continue to work, but the main Ukrainian question on this day lay at the financial level.

– We hear conflicting information from Ukraine on the return, or the unwillingness to return the money received through various channels, in including from private creditors, – Putin said. – Our banks have a loan portfolio in Ukraine somewhere in the amount of 24-25 billion Ukrainian customers have given approximately the volume. We hear the statements of responsible persons, which is considered an opportunity not to repay loans obtained by the former leadership of the country. But here we are talking about the sovereign guarantee of the Ukrainian state. I would like to understand the intentions of our partners.

The President recalled that in late 2013. In fact, Russia has given Ukraine a loan – placed part of the reserves of the National Welfare Fund, bought three billion dollars Ukrainian government bonds

– And at a very reduced rate, – Putin said. – At that time Ukraine could receive the funds at least at 10%. We agreed on a 5% per annum. In addition, we have the right for a long time to show these funds for early redemption – under the terms of our agreement, if the total volume of state debt of Ukraine more than 60%, we have a right to early repayment. But at the request of our Ukrainian partners, we do not use this right, not wanting to aggravate an already difficult economic situation of our partners and neighbors.

Finance Minister Anton Siluanov confirmed that the Verkhovna Rada passed a law that gives the right to the Ukrainian government to make decisions about how to pay their debts to commercial and other creditors.

– As long as Ukraine fulfilled its debt service obligations, – said the head of the Ministry of Finance. – The most recent payment was in February this year. The next payment is to be June 20 at $ 75 million. If we see a violation of the commitments that Ukraine took by investing our resources, we will appeal to the court.

– strange for a statement because there is no more middle of the year. Announcing the upcoming actually defaulted – a level of responsibility and professionalism, of course, to all appearances, is not high. Despite the fact that the country is put under external management. And then, as I understand it, the IMF does not provide any loans to countries that are in a situation of default.

Siluanov confirmed that the IMF program can not provide resources for a country that has outstanding debts.

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