Ukraine urges creditors do not delay restructuring

LONDON (Reuters) - Ukraine can not do a simple deferred repayment of Eurobonds, said Finance Minister, advising creditors to agree to a complete restructuring of the now and not wait for better times and conditions.

Natalia Yaresko, who departed on a world tour to meet with lenders, said in an interview with Reuters in London that Kiev proposed restructuring of Eurobonds, including paper for $ 3 billion, Russia purchased from the former Ukrainian government. Moscow believes that debt interstate, and not private, and waits for its full repayment on time.

Ukraine is discussing with creditors as postponement of debt repayment and reduction coupon and nominal bonds. Many believe that Kiev is sufficient to lengthen maturities of debt to calmly assess their financial capabilities and later decide what he needs to write off.

"Just rescheduling will not allow us to achieve the three goals that we have agreed with the IMF, we do not get the required level of debt sustainability," - said Yaresko.

After the revolution, during the war, in the fall of the economy and the devaluation of the hryvnia Ukraine has agreed in March with the International Monetary Fund on a four-credit program in the amount of $ 17.5 billion, which also provides for the restructuring of at least $ 15.3 billion Ukrainian debt.

"We're trying to do it at a time and do it in such a way as to get a breather and a margin of safety that will allow us to move forward," - she said, adding that this is a lesson learned from previous restructurings, including Greece.

Experience has shown Greece and the fact that the holders of the debt restructuring renounced eventually able to return more than those who agreed to it. Yaresko sure that Ukraine is not that case.

"I do not consider this option to be realistic. Our goal - to involve as many as possible. I do not think that is the best option to refuse in this case," - she said.

"We do not have this package of financial assistance and a bag, like Greece."

Yaresko dispelled rumors about the possibility of restructuring in which creditors in exchange for debt relief get bonds, guaranteed by the United States in fact - like the so-called Brady bonds late last century.

"It is not possible at the moment," - she said.

On the question of why it is impossible - Ukraine is not requested or Washington did not offer - she replied:

"The United States does not provide this."

Yaresko from last week is holding meetings with 15 major bondholders Ukraine, including the American fund Franklin Templeton, which has a portfolio of Eurobonds for $ 6.5 billion, or more than a third of all outstanding sovereign issues of Ukraine.

Another major holder of Ukrainian bonds is Russia, which has repeatedly stated that it is not ready for restructuring and waiting for the return of $ 3 billion in December.

Russia believes that the debt is not subject to restructuring under the IMF program and should be discussed in the Paris Club of creditor nations, and not in the London clubs including holders of obligations to the private sector.

Responding to a question, what is its opinion on the matter, Yaresko said: "For me it is clear (that they - the London Club). This Eurobonds, but they say that they are not the London club."

She said that after the Russian bondholders determined, Ukraine will take into account their decision.

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