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Ukraine Pushed to Mend Fences With Russia to Keep IMF Rescue

  • Creditors need to engage in `substantive dialogue': IMF
  • Showing will to do deal not hard for Ukraine: Oxford Economics
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Ukraine may need to step up efforts to resolve a standoff with Russia over a $3 billion bond due this month to keep receiving aid from the International Monetary Fund.

While the IMF loosened its policy this week to allow lending to countries that default on money owed to sovereign creditors, it said debtors need to engage in “substantive dialogue” with creditors and be willing to meet separately from private lenders. Ukraine, which is preparing to default on the bond due Dec. 20, has offered Russia the same restructuring terms including a 20 percent principal writedown that creditors led by Franklin Templeton accepted in October. Russia has insisted on payment in full.