Ukraine's Finance Ministry says the ruling of London's High Court to oblige Ukraine to repay the $3 billion debt to Russia will not affect the cooperation program with the IMF.
The National Bank of Ukraine says Privatbank requires 116 billion hryvnia ($4.3 billion) in additional capitalization. Another 32 billion hryvnia might be written off as they relate to the bank's shareholders.
Ukraine's government and government-backed debt amounted to $64.35 billion or 1,740,940,000,000 hryvnia late Feb., which was 1.8 percent or $1.16 billion lower than the one recorded at the beginning of the year. However, this index is 10.7 percent or 168,760,000,000 hryvnia higher than the one in the national currency as at the beginning of the year.
Russia's Finance Ministry has filed a lawsuit against Ukraine to London's High Court of Justice over the non-payment of a $3 billion loan.
Germany is asking Ukraine to propose a new offer to resolve a dispute with Russia over a $3 billion bond default after President Vladimir Putin’s government rejected a proposal put forward last month.
Ukraine expects to reach agreement with Russia on restructuring of Putin’s loan to Yanukovych in the amount of $3 bn and is willing to change the conditions compared to the last year’s Eurobond exchange scheme, if the saving will not be less as a result.
The Ministry of Finance has taken into account the decision of the Russian Federation to initiate a lawsuit against Ukraine and reiterates its readiness to negotiate the restructuring of $3 billion Eurobond.
Finance Minister Natalie Jaresko expressed hope that Ukraine and Russia would manage to agree on Russian debt settlement before the legal action is taken.
Ukraine is ready to be in litigation with Russia over nonpayment of $3 billion loan received by Yanukovych.
Russian President Vladimir Putin has instructed Finance Minister Anton Siluanov to sue Ukraine in connection with the non-payment of the $3 billion loan.
The International Monetary Fund expects that the issue of Ukraine's debt to Russia will be resolved through direct negotiations.
Moscow's proposal voiced Nov. 16 is unlikely to please Ukraine's private creditors who agreed to cut country's debt burden under a restructuring called for by the International Monetary Fund.
Russia hopes to reach a compromise with Ukraine over Kyiv's debt and has made an offer which it sees as a basis for settling the issue.
U.S. Treasury Secretary Jacob Lew said he hoped Russia would reconsider its position on the debt restructure, giving Ukraine a chance to become able to repay its obligations from growing economy.
Ukraine’s Western allies are preparing to accelerate planned changes to the International Monetary Fund’s lending policies to prevent Russia from stymieing a $25 billion rescue package for the war-torn nation.
The eurobonds restructuring terms offered by the Ukrainian government have been supported by 75 percent of creditors.
The Ministry of Finance plans to hold talks with Russia, seeking to write off $3 bln owed in government bonds with maturities expiring at the end of the year.