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Arseniy Yatsenyuk to MPs: Non-voting for debt restructuring package means de facto announcement of default
17.09.2015 | 12:54
Information and Communication Department of the Secretariat of the CMU

Prime Minister of Ukraine Arseniy Yatsenyuk called on the Parliament to consider a package of bills on the restructuring and write-off of debts under the most open procedure and hammer it home to every MP":" We are appealing to the Parliament so that the procedure of consideration of this matter was not hidden as on all sorts of the previous agreements, which were signed by the previous governments, and so that the people of Ukraine specifically knew all the answers to the restructuring agreement," Prime Minister of Ukraine Arseniy Yatsenyuk stated in Parliament on Thursday, 17 September.

Arseniy Yatseniuk called the current session of the Parliament "a very important day for our country": "Ukraine's Parliament is to consider the issue of the restructuring and write-off of debts that have been created neither by this Government nor this Parliament, but it is our fate to shoulder responsibility for stabilizing the financial situation in the country, improving social standards, returning Ukraine to the path of growth and writing off debts bred by the previous governments."

The Prime Minister reminded that after lengthy negotiations for almost six months, the Government managed to obtain the consent of creditors to a 20% writedown of Ukraine’s foreign debt: "It is about a $3.6 billion write-off, as well as about additional savings and de facto write-off of interest we had to pay till 2040, totaling $5.9 billion."

The deal includes a freeze on debt repayments amounting $11 billion for four years.

"This deal has been approved by the entire international community. This deal is directly supported by our primary investor and creditor - the International Monetary Fund. It is backed by all the governments of the Group of Seven. This agreement is not supported only by one country - the Russian Federation," he stressed.

Therefore, the PM pointed out, the Russian Federation remains the only country that refused to participate in the committee of creditors and accept the conditions supported by other creditors: "Russia demands the repayment of the whole debt."

"Speaking from this rostrum, I want to declare once again that there will not be better conditions for Russia," Arseniy Yatsenyuk emphasised.

He appealed to MPs: "It is about the future of the country. It is about one of the major financial deals in the history of the country. Voting for this package means voting for economic growth, for inflow of foreign investment, creation of new jobs and increasing wages, pensions and social standards."

Voting for the debt restructuring and write-off gives an additional financial resource to the country that enable to carry out further economic reforms, he said.

"Non-voting for this package means the de facto announcement of default. Non-voting for this package means that Ukrainian citizens would not be able to have an increase in social benefits, standards, pensions and wages," the Prime Minister pointed out.

"This Government with the support by the Verkhovna Rada of Ukraine, which I hope for, is to write off debts and enable the Ukrainian economy to grow, and Ukrainians to receive a decent salary and be able to keep on building up the basis for economic growth of the country. I am confident that today we will take a proper state solution," Arseniy Yatsenyuk highlighted.

 

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