IMF to consider lending policy toward debtors at tomorrow meeting

It is expected that a special meeting of the IMF Executive Board on this issue will be held tomorrow, December 8.

Earlier, the Fund officials stated that the Executive Board may also consider the Ukrainian issue, in the context of Ukraine's $3 billion debt to Russia. Ukraine has included the $3 billion eurobond in the list of the sovereign and sovereign-guaranteed bonds to be restructured, but Russia reiterated that it does not see the debt as commercial. At the same time, the IMF has repeatedly stressed that the final decision on this issue should be made by Ukraine and Russia through direct negotiations, without the IMF participation. However, preparations for such negotiations have not yet started.

Read alsoIMF expects direct debt talks between Ukraine and RussiaAs noted, the Russian debt will not be a fundamental issue for the continuation of cooperation with Ukraine under the IMF's Extended Fund Facility program, adopted in March this year. According to IMF Managing Director Christine Lagarde, the IMF will continue its lending program even in case of non-repayment of Russia's loan. The IMF said it was rather concerned that Ukraine adopted a new tax code, the draft budget for 2016 and fulfilled its obligations under the anti-corruption policy, including the appointment of anti-corruption prosecutors and the start of anti-corruption bodies’ activities.