Ukraine is in talks with the International Monetary Fund (IMF) over restructuring the country’s $3.1 billion debt resulting from the 2008-2009 stand-by loan program, First Deputy Economic Development and Trade Minister Vadim Kopylov said on Thursday.
“We are holding talks with the IMF about possible restructuring of the debt maturing this year,” Kopylov said.
Ukraine has had difficulty servicing its foreign debts after failing to agree lower gas prices with Russia, following a 2009 deal which obliges Kiev to pay higher gas prices than current market rates for other European states.
In July 2010, the IMF approved a $15.15-billion standby loan for Ukraine “in support of the authorities’ economic adjustment and reform program.” Ukraine has so far received two tranches worth a total of over $3.4 billion. The provision of further aid was suspended in December 2010, after disagreements between Kiev and the IMF over spending cuts.
Kopylov also said Kiev preferred to discuss loan restructuring instead of refinancing.
“[It will be better] to postpone the payment of this $3 billion. We should ask to put off the payment of these funds for 10 years as it will be easier for us to operate with other debts,” he added.