Ukraine talking to major institutions about ways to reduce debt payments

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FILE PHOTO: Ukrainian flag flutters, amid Russia’s invasion of Ukraine, in Kyiv, Ukraine Could 12, 2022. REUTERS/Viacheslav Ratynskyi

KYIV — Kyiv is speaking to main worldwide monetary establishments about methods to cut back debt funds within the close to future, Ukraine’s authorities commissioner for public debt administration Yuriy Butsa mentioned on Thursday.

The remarks got here a day after Ukraine requested its worldwide collectors, together with Western powers and the world’s largest funding corporations, to freeze funds for 2 years so it might focus its dwindling assets on the warfare with Russia.

The delay was shortly backed by main Western governments and heavyweight funds which have lent to Kyiv.

“We’re additionally speaking to worldwide monetary establishments. The authorized approaches might be completely different,” Butsa informed a convention organized by the Kyiv-based Middle of Financial Technique assume tank.

“It’s just a little early to speak in regards to the mechanics, however we mentioned these points with these collectors and our considering goes on this path,” he mentioned.

Butsa famous that in 2022, Ukraine was on paper set to pay the Worldwide Financial Fund greater than it will obtain. Arranging a brand new IMF program was not potential given the present circumstances, he mentioned.

“We’re speaking with the IMF and different companions about what the options is perhaps. We’d like liquidity from the IMF to switch these outflows,” he mentioned.

Ukraine estimates the prices of the warfare mixed with decrease tax revenues has left a $5 billion-a-month fiscal shortfall – or 2.5% of pre-war GDP. Economists calculate that pushes the annual deficit to 25% of GDP, in contrast with 3.5% earlier than the battle.

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