The right of Ukrainian government to impose a moratorium on foreign debt payments

Statement on the Draft Law for the Government of Ukraine the right to impose a moratorium on foreign debt payments.

The Ukrainian government is making to the Verkhovna Rada a draft law that must provide the Cabinet of Ministers of Ukraine the right, if necessary, to stop payments to holders of international debt.

Ukraine is in a difficult economic situation, and issues of international debt payments - this is a matter of justice.

Ukrainian people are making extraordinary efforts for the European future - and pays for it ultra-high price. Extraordinary leverage

Ukraine "is obliged" the previous regime of Viktor Yanukovych. Under his rule, the amount of debt of Ukraine increased by 40 billion. Dollars. For citizens of these funds never reached. They were wasted in vain for the country.

At the same time, paying only for foreign currency debt obligations over the next four years amount to about 30 billion. US dollars. This includes the maintenance and debt repayment. And the question of justice for the Ukrainian population - reduce such extreme debt burden. After all, today the state budget for 2015 the cost of servicing debt is the same as the total expenditure on defense and law enforcement - more than 90 billion. Hryvnia each. This is about 5% of GDP each. Government has the right to direct funds that taxpayers pay in Ukraine, to the needs of its citizens and not to return loans that took kleptocratic regime of Yanukovych.

Our bilateral and multilateral partners are going to meet us and make the most connected to the support of the people of Ukraine. The international community, including the United States, European Union and international financial institutions are on the side of Ukraine in this difficult time. We have agreed with our international partners, that:

- 17.5 billion. Dollars. US will give Ukraine the IMF (in case of our country real reforms to our society);

- 7.2 billion. Dollars. United States, we expect in the format of our funding from bilateral partners and international financial institutions.

But it is important to our debt holders have also made a contribution to this effort. Only in 2015, supported 3.1 billion. US dollars, we paid 2.4 billion. US dollars.

And so 15.3 billion. Dollars. US - is to reduce the burden on the balance of payments over the next four years, we expect the results of negotiations with our international commercial creditors through debt restructuring. Without a strong participation of commercial lenders Ukraine will not be able to stabilize the situation and return to growth in 2016.

To protect the interests of the Ukrainian people, the Ukrainian government is making to the Verkhovna Rada a bill that would give the government the right to suspend the payment of some external obligations of public and publicly guaranteed debt of Ukraine, as indicated in the Annex to the corresponding resolution of the Cabinet. And in the case of attack on unscrupulous lenders Ukraine, the moratorium protects the assets of the state and the public sector.

Any moratorium declared in accordance with the new law, in the future, will not affect our bilateral and multilateral debt, as well, and will not affect our domestic obligations. The law is aimed at those external sovereign direct and guaranteed obligations as specified in the perimeter (in addition to the two state-owned banks and the Ukrainian Railways).

It should be noted that the granting of such rights by the Government of Ukraine does not affect either the stability of the banking system of the country or the rate of the Ukrainian hryvnia. But the adoption of this law, we will ask our foreign private lenders to join the support of Ukraine and to share our burden.

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