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Kyiv will introduce a temporary moratorium on the city's external debt payments to be effective as of November 6, according to an UNIAN correspondent.
It is reported that 90 out of the 103 deputies registered in the session hall voted for the appropriate decision, which was prepared by the budget committee of Kyiv's city council.
It is noted that the budget committee has "unanimously" agreed to recommend the city council "introduce on November 6, 2015 the suspension of transfers to service and repay local external borrowings raised in accordance with a decision by the city council as of December 28, 2004, and according to a decision as of May 25, 2011."
The second paragraph of the decision suggests that Kyiv city council's finance department impose the suspension of debt payments.
"We believe that this step will not impede search for a compromise with our creditors. We remain committed to finding a solution to the problem of debt obligations. It will suit perfectly all parties," Chairman of the Budget Committee Andriy Strannikov said.
Currently, Kyiv holds UAH 18 billion in total debt, including external and internal borrowings, according to Strannikov.
He also pointed out the fact that "external borrowings were attracted at the rate of UAH 5.05 per U.S. dollar, whereas the current rate is several times higher."
Strannikov also noted that Kyiv's creditors believe that the city has sufficient funds to repay its loans. However, the city authorities are set to continue negotiating and looking for a compromise that would satisfy both parties.
As reported earlier, Fitch Ratings international credit rating agency will revise upward Ukraine's sovereign rating, which was downgraded to 'RD' (Restricted Default), consistent with the progress in restructuring part of the public debt and reaching a compromise with the creditors on the swap of short-term eurobonds.