IMF Policy Change Pushes Ukraine, Russia to Resolve Bond Dispute
- Under new IMF policy, Ukraine must negotiate in 'good faith'
- Russia expected to avoid acting as restructuring 'holdout'
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Ukraine will need to negotiate in "good faith" with Russia over a $3 billion bond due this month if it wants to continue receiving a loan from the International Monetary Fund under a policy change the institution laid out this week.
The IMF’s executive board approved a policy change on Dec. 8 that will allow lending to countries that default on debts to sovereign creditors. The change clears the way for the Washington-based fund to continue lending to Ukraine if it fails to repay a $3 billion bond Russia bought from the government of former Ukrainian leader Viktor Yanukovych in 2013.