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Any out-of-court deal to restructure Ukraine's $3 billion debt to Russia must deliver the same economic effect for Kyiv, though its format would likely differ from last year's private sector debt swap, Ukraine's Finance Minister Natalie Jaresko said on Wednesday, according to Reuters.
"Unfortunately the Russian delegation wasn't able to meet us in Davos but I am always an optimist. We have a good track record of finding consensual agreements... it's the preferable way for all of us," Jaresko said speaking to Reuters on the sidelines of the World Economic Forum in Davos.
Jaresko said she remained optimistic about the possibility of reaching an agreement with Moscow, even though the Kremlin has pledged to file suit against Kyiv for non-payment of the bond which matured last month.
She said however that an agreement with Russia had to be consistent with the International Monetary Fund's loan program to Kyiv which envisaged saving $15.2 billion over four years via restructuring debt, and also must fit with the terms of the Eurobond restructuring that Ukraine conducted last year.
Read alsoUkraine ready for legal proceedings around Russia-held $3 bln bond"That means no better arrangement can be done, it doesn't mean it has to be identical (to the Eurobond restructuring). It has to have the same net economic effect," Jaresko said. "By definition it will be different technically but we must end up with the same net present value."
As UNIAN reported earlier, on December 18, Ukraine announced a moratorium on any payments of the Russian debt, including payment of $3 billion borrowed under Viktor Yanukovych's presidency and maturing in December 2015. This moratorium also encompassed Ukraine's sovereign-guaranteed loans to Ukravtodor and Yuzhnoe owed to the Russian banks.
Total debt subject to the moratorium exceeded $3.58 billion.
In December 2015, the IMF, which is Ukraine's key lender, recognized the bond as Ukraine's official debt.
On December 30, 2015, the Cabinet of Ministers confirmed its decision to impose a moratorium on the payment of debt to the Russian Federation in the amount of $3 billion, taken by the Yanukovych government in 2013, and in December 2015 recognized as official debt of Ukraine. The government's decision was due to the fact that Russia had refused to restructure these debts.
At the same time, on January 13, 2016, the Ministry of Finance, together with Ukravtodor and the Yuzhnoye State Design Office, agreed in principle with Sberbank of Russia on the restructuring of sovereign guaranteed loans to Ukravtodor and Yuzhnoe State Design Office.