UKRAINE-CRISIS/IMF IMF chief urges Ukraine's creditors to accept debt restructuring programme

Record ID: 141730

  • Title: UKRAINE-CRISIS/IMF IMF chief urges Ukraine's creditors to accept debt restructuring programme
  • Date: 6th September 2015
  • Summary: KIEV, UKRAINE (SEPTEMBER 6, 2015) (REUTERS) ***WARNING CONTAINS FLASH PHOTOGRAPHY*** PRESIDENTIAL HEADQUARTERS ENTRANCE UKRAINIAN AND EU FLAGS WAVING INTERNATIONAL MONETARY FUND CHIEF, CHRISTINE LAGARDE, GETTING OUT OF CAR, GREETING UKRAINE'S PRESIDENT, PETRO POROSHENKO SIGN READING (Ukrainian): 'PRESIDENT OF UKRAINE' POROSHENKO AND LAGARDE TALKING POROSHENKO AND LAGARDE ENTERING BUILDING POROSHENKO AND LAGARDE TAKING SEATS VARIOUS OF POROSHENKO TALKING, LAGARDE LISTENING LAGARDE NODDING MEETING IN PROGRESS UKRAINIAN AND IMF DELEGATIONS TAKING SEATS AT TABLE VARIOUS OF POROSHENKO SPEAKING IMF DELEGATION LISTENING MEETING IN PROGRESS POROSHENKO AND LAGARDE ENTERING NEWS CONFERENCE (SOUNDBITE) (Ukrainian) UKRAINIAN PRESIDENT, PETRO POROSHENKO, SAYING: "I hope that the active reformatory efforts of Ukrainian government will open the way to a positive decision regarding the next IMF tranche." NEWS CONFERENCE IN PROGRESS (SOUNDBITE) (English) INTERNATIONAL MONETARY FUND CHIEF, CHRISTINE LAGARDE, SAYING: "It is really up to all creditors to take advantage of the debt restructuring which has been described by some as 'well-balanced', very much in the interest of Ukraine, particularly with the long-term very incentivising mechanism, but also for creditors in order to induce them to accept the deal that delivers critically now and in the next few years." MEDIA (SOUNDBITE) (English) INTERNATIONAL MONETARY FUND CHIEF, CHRISTINE LAGARDE, SAYING: "I would observe that a coupon has been recently paid on that three billion, that you are referring to. It is up to the board to determine the characterisation of one bond or the other. And I think it will be for the board to decide. And it has not done so for the moment." (SOUNDBITE) (Ukrainian) UKRAINIAN PRESIDENT, PETRO POROSHENKO, SAYING: "Under no circumstances Russia will receive better terms than other creditors of Ukraine. (It) does not matter whether it will join it (Ukraine's restructuring debt offer) or not." MEDIA POROSHENKO AND LAGARDE SHAKING HANDS, LEAVING
  • Embargoed: 21st September 2015 13:00
  • Keywords:
  • Location: Ukraine
  • Country: Ukraine
  • Topics: General
  • Reuters ID: LVAC524U370ATW4TQTFVNR7A6KCL
  • Aspect Ratio: 16:9
  • Story Text: International Monetary Fund chief Christine Lagarde on Sunday (September 6) praised Ukraine's economic progress and urged its creditors to take full advantage of a deal to restructure $18 billion of sovereign and quasi-sovereign debt.
    Ukrainian President, Petro Poroshenko, expressed hopes that economic progress will result in the next tranche.
    "I hope that the active reformatory efforts of Ukrainian government will open the way to a positive decision regarding the next IMF tranche," Poroshenko said.
    Speaking in Kiev alongside Ukrainian President, Lagarde said: "It is really up to all creditors to take advantage of the debt restructuring which has been described by some as 'well-balanced', very much in the interest of Ukraine, particularly with the long-term very incentivising mechanism, but also for creditors in order to induce them to accept the deal that delivers critically now and in the next few years."
    Heavily-indebted Ukraine agreed late last month with its largest group of creditors to a deal that includes a write-down of 20 percent of the principal owed, a small increase in the coupon on most of the bonds and a four-year extension of maturity for each bond.
    Talks are going on to gain support from the other creditors.
    But Russia says it will continue to demand full repayment of a $3 billion eurobond coming due in December because it considers this debt official, not commercial.
    Asked at a joint news conference with Poroshenko about the bond, Lagarde said: "I would observe that a coupon has been recently paid on that three billion, that you are referring to. It is up to the board to determine the characterisation of one bond or the other. And I think it will be for the board to decide. And it has not done so for the moment."
    And Poroshenko said Russia will not get any advantages as Ukraine's creditor.
    "Under no circumstances Russia will receive better terms than other creditors of Ukraine. (It) does not matter whether it will join it (Ukraine's restructuring debt offer) or not," Ukrainian leader said.
    Lagarde said she was extremely encouraged by Ukraine's economic progress but urged Kiev to continue the fight to end corruption.
    Poroshenko said he expected the Fund to agree on a third tranche of financial aid for Ukraine in October under a four-year Extended Fund Facility (EFF) programme totalling $17.5 billion.
    An initial slice of $5 billion was disbursed immediately after the programme was approved by the IMF in March 2015 and another tranche of $1.7 billion was issued in July.
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