Accessibility links

Breaking News

IMF Changes Rule On Debt For Ukraine, As Russia Complains

The International Monetary Fund (IMF) has changed a rule that would have blocked its financial aid program to Ukraine in the event the country defaulted on its debt owed to Russia.

IMF spokesman Gerry Rice said the executive agreed on December 8 to “change the current policy on nontoleration of arrears to official creditors," such as a government.

Russian Finance Minister Anton Siluanov criticized the decision as “hasty and biased,” saying it was taken “exclusively to the detriment of Russia."

"We are preparing documents for a court appeal," he added.

The move comes as cash-short Ukraine faces a December 20 deadline to repay Russia for a $3 billion loan.

Ukraine is restructuring its debts under an IMF-led $40 billion bailout program.

Defaulting on the Eurobond loan could have put the program at risk.

Based on reporting by Reuters and AFP