Ukraine to continue servicing its debt in full, cabinet says

The Ukrainian government sees no grounds for
restructuring state debt and urges the public not to speculate on debt policy,
the cabinet said in a special press release issued at 1 a.m. on Mar. 24.
“Ukraine is better prepared for the potential crisis than in 2008. We have
significant reserves, high bank liquidity and much better macroeconomic
indicators,” Prime Minister Denys Shmyhal said in the press release.

The release was issued several hours after Shmyhal
commented on the subject on a television talk show. “We indeed have to
restructure [external debt]. And we have started negotiations with our
international partners … Today we are doing the same things that all developed
countries are doing: we are competing for cheap financing for our budget,”
Shmyhal said.

Alexander Paraschiy: From the
context of Shmyhal’s comments, it looks like he did not mean restructuring, but
refinancing. And the blizzard reaction of the cabinet’s press service to prime
minister’s random phrase is a positive sign: the government looks really
determined to avoid even any hints of the non-fulfilment of state debt
obligations. Of course, the only way to fulfill them is to deal with the IMF.
Here, the biggest challenge will be the Ukrainian parliament’s ability to pass
a bill that will prevent the return of failed banks into the hands of their
former owners. In essence, this is the ability of parliament to challenge Ihor
Kolomoisky.