Russia offers to restructure Ukrainian debt

Putin at G20 summit in Antalya

Putin at G20 summit in Antalya

Ukrainian debt: President Vladimir Putin has made a surprise offer to restructure Ukraine’s debt, telling Kiev it would accept an annual debt repayment of $1bn over three years if the West provided guarantees. Russia has until now refused to restructure the $3bn Eurobond on Ukraine’s terms, saying the debt could not be considered commercial. It had threatened take Ukraine to court if it failed to repay the bond in full and on time next month. But speaking to reporters on the sidelines of the Group of 20 (G20) summit in Turkey’s Antalya yesterday, Putin said Russia had made Ukraine an offer that was “better” than what the International Monetary Fund had been suggesting.
 Moscow had made the proposal to try to ensure full repayment and “not to put Ukraine in a difficult situation,” said Putin, adding he had asked Western partners and the IMF itself to guarantee debt repayment. “If the West cannot give a guarantee, it means they do not believe in the future of the Ukrainian economy,” Putin said, adding that the matter should be decided by December.
He said he had held talks “in passing” with U.S. President Barack Obama and Treasury Secretary Jack Lew on the debt deal on Monday. “The proposal was received with interest,” Putin said. Ukraine’s finance ministry said on Monday it had not received “any direct information” on an offer by Putin.

Source: reuters