The International Monetary Fund (IMF) has plans to make changes to its lending rules, which may allow continued support for Ukraine even in case the latter is in default. That was announced by the Wall Street Journal with reference to a reliable source.
According to the latest release, the IMF’s board is set to consider the change in late November after leaders of the G20 meet in Turkey. Currently, the IMF policy prohibits it from lending to countries, which are in arrears to other governments. There is a high risk that Kiev will default its debt to Russia, people familiar with the matter said.
In September, Ukraine’s government began a process of debt restructuring, including a $3 billion Eurobond held by Russia. For some reasons, Kiev assumes this debt to be commercial rather than public. However, the Kremlin has already expressed its intention to refrain from participating in debt restructuring insisting that the Russian-held bonds should be fully redeemed by December 2016.
