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Ukraine’s ex-PM calls IMF decision on Kiev’s debt absurd

Former Ukrainian prime minister Mykola Azarov currently resides in Russia and heads the so-called Ukraine Salvation Committee

Mykola Azarov Sergey Bobylev/TASS

Mykola Azarov

© Sergey Bobylev/TASS

MOSCOW, December 10 /TASS/. The International Monetary Fund (IMF) has adopted "irrational" changes to its credit policy under the US influence, Mykola Azarov, Ukraine’s former prime minister and the head of the Ukraine Salvation Committee, said commenting the IMF reform, which allows granting financial aid to Ukraine in conditions of default.

"The IMF is a politicized organization under the US control," Azarov said in an interview aired by Channel Russia 1.

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"How can one issue credits to someone who is bankrupt? To encourage the practice of not returning the debts? It is an absolutely absurd and irrational decision. It was done proceeding from the US political approaches in the first place," Ukraine’s former prime minister said.

On December 8, the IMF Board of Directors lifted a ban on issuing credits to countries with an overdue sovereign debt. It means that the IMF will continue implementing its anti-crisis progrramme for Ukraine even if Kiev delays its payment of debts to Russia. The Russian Finance Ministry believes the IMF’s decision is valid only for Kiev, which has managed to agree on restructuring its commercial debt with all the creditors. What it has not done is to reach an agreement on an official credit with Russia.

Earlier, Russian President Vladimir Putin said Russia was ready to restructure Ukraine’s debt for 3 billion U.S. dollars if it received guarantees from the United States, the European Union or any other major financial institution. No guarantees have been provided. On December 20, Ukraine is expected to repay its credit to Russia. If Ukraine does not do that, Russia will sue it in court in ten days following that deadline.

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Ukraine crisis IMF

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