Russia may be left without $ 3 billion in debt issued by Ukraine. The Verkhovna Rada has allowed himself to not pay foreign debts, which together reach $ 42 billion. The economy went into the negative, and the rejection of financial liabilities – “it is a question of justice,” said the government. Experts point out that the decision of Parliament – a signal that the country is in a state of preddefoltnom.
The Verkhovna Rada of Ukraine adopted in the first reading and once final bill “On peculiarities of the transactions with the state, guaranteed by the state debt and local debt “, which gives the government the right to” suspend payments on some foreign debt. ” Relevant amendments have been made to the budget.
The bill made by the Government. Prime Minister Arseniy Yatsenyuk during the presentation of the bill MPs said that it exclusively on private creditors, who are the holders of the external public debt.
«Now the government asks you to give the Cabinet the right to – I emphasize, law, and we decide to take advantage of it – for a moratorium on external payments Ukraine’s debt to private creditors only,” – said the prime minister.
The moratorium is needed in case of an attack on unscrupulous lenders Ukraine. The law adopted by the Rada, to protect the assets of the state and the public sector from possible lawsuits by creditors.
According to the Ministry of Finance of Ukraine on April 1, Ukraine’s foreign debt amounts to $ 42 billion . This will have to restructure its debt, and – that is possible debt relief and the extension of the obligations. Terms of the government offer. They are not yet disclosed.
But Yatsenyuk believes that the restructuring of debt in the next four years will provide an opportunity to reduce the burden on the Ukrainian government for $ 15 billion. That is, lenders may be short about a third of their investments.
The Government believes that this algorithm is valid.
«Ukraine is in a difficult economic situation, and the question of payment of international debt – it is a question of justice,” – says the official website of the government.
Rothschilds against Kiev
The right to the moratorium, prepared by the Government, it is a signal in the first place the largest holder of Ukrainian state debt – investment fund Franklin Templeton, owning the Ukrainian government securities by about $ 4 billion. The fund “Templeton” is controlled by the Rothschild family and is considered the most scandalous “financial vulture.” These funds buy up the debt for pennies paper with “junk” rating, and then present them to the issuer from the requirement of 100 per cent payment at par. So did the Rothschilds with Argentina: the country has settled the debt with almost all holders of government securities, except for “financial vultures”, but had to cancel the agreement.
Total Ukraine has private creditors (funds Rowe Price, TCW Group, BTG Pactual) about $ 9 billion.
As previously reported The Wall Street Journal, the creditors’ committee has sent to the Ministry of Finance of Ukraine, “a detailed proposal, which does not provide for any reduction principal. ” Negotiations with the Government of Ukraine reached an impasse. Earlier, the IMF decided to grant Ukraine assistance package of $ 17.5 billion, recommended that the government is somehow negotiate with private creditors no later than mid-June.
In Kiev, the IMF mission is currently working, which should take a decision on the second tranche of the financial assistance program, increased funding EFF. Without the settlement of obligations to foreign creditors a decision can not be accepted.
The list of external liabilities that the Ukrainian government can impose a moratorium, the annex to the draft law. Ukraine may refuse to temporarily fulfill the conditions for the following debt: bonds external treasury bonds 2005-2013 period; Eurobonds state enterprise “Financing of infrastructure projects” 2010, 2011, 2012, the issue of loans, “Ukravtodor” attracted in 2005-2011, the credit of the state enterprise “Design Bureau” Yuzhnoye “named after MK Yangelya “of 2011, state-owned credit institutions to provide medical” Ukrmedpostach “, attracted in 2009. Also, this list includes the duty on local and foreign borrowings of local external borrowing of Kyiv City Council, issued in 2005 and 2011.
Eurobonds, which bought Russian
Among the lenders Ukraine Russia – one of the largest.
In December, 2013 the Kremlin has decided to provide a loan to the then Ukrainian President Viktor Yanukovych, having invested in Eurobonds Ukraine up to $ 15 billion. The first tranche was $ 3 billion – a circulation period of two years with a coupon rate of 5% per annum coupon payments once every six months. The debt is to be repaid by Ukraine in December 2015.
Russia refused to participate in the restructuring of the Ukrainian debt and wants to get his money back on time. It has repeatedly emphasized the Russian authorities.
«We have to any restructuring will not give consent. We will wait for the fulfillment by Ukraine of its obligations “, – the head of Russia has consistently repeated the Ministry of Finance Anton Siluanov.
In the event of default by Ukraine Russia will turn to arbitration in accordance with English law, as provided in the default or failure of Ukraine to Russia, explained Siluanov.
On Tuesday, the adviser to the president of Russia Vladimir Putin, Sergei Glazyev called “illegitimate” decision of the Verkhovna Rada on granting the right to the Government of Ukraine to introduce a moratorium on foreign debt payments.
Ukraine considers a loan issued to her Russian, commercial debt. Earlier, Finance Minister Natalia Yaresko said the TV channel CNBC, the restructuring of purchased Russian Ukrainian Eurobonds refers to the mechanisms of the London Club. “We have no reason to regard them as any other loan except as” London style “of credit: they were not registered in the Paris Club (it combines state creditors) and to date we are notified of their final beneficiaries through the depository system, as well as all holders sovereign bonds, “- she said.
Russia insists that the state acted as lender, and regulates the relations between the London Club of private investors.
The decision of Parliament – it is a signal that Ukraine is in a state of preddefoltnom. To pay foreign debts, it is still able, but not all, experts say.
As long as the country is negotiating with creditors on restructuring the country is not formally considered bankrupt, they note .
The mandate issued by the Rada, is the determination of the Ukrainian government to put pressure on private lenders and their desire to put before a choice: either we will declare themselves bankrupt and you will get nothing, or agree to our terms – payment of the debts, explains ING Bank chief economist for Russia and CIS Dmitry Polevoy.
Without fixing the debt is impossible to achieve financial stability in the country and receive another loan from the IMF, adds Field. According to him, the debt to Russia can not be attributed to the commercial debt, so the moratorium is not covered.
Experts do not undertake to predict the chances of Russia to return the debt. The situation is complicated by the geopolitical factor and economic sanctions of the West to join the Crimea, the military conflict in the south-east of Ukraine, which, according to the EU and the US, and Russia participate.
In addition, Ukraine in the coming years will only accumulate debts, and not to give up and could become a “second Greece” zakreditovannoy above their financial possibilities. IMF experts predict that Ukraine’s public debt reached 2.27 trillion USD (approximately $ 103 billion at current exchange rates) in 2020. According to the IMF, the internal debt of Ukraine in 2020 will grow to 863.6 billion USD, and external – to 1 trillion 404.5 billion USD. 
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