IMF review of rules for Ukraine’s benefit may set serious precedent for international law

The International Monetary Fund (IMF) will set a serious precedent in case it carries on its lending program for Ukraine despite Kiev’s refusal to repay $3 bln to Moscow, Ukraine’s former minister of economy and financial expert Victor Suslov told TASS on Thursday, adding that this kind of decision would have been purely political and would have demonstrated revamping of the whole system of international law.

"The IMF may set a serious precedent, showcasing that the previous system of international law and rules of the game for global organizations are collapsing as those rules are becoming more politicized," Suslov said when commenting the information that the IMF is ready to change requirements for granting loans in order to provide Kiev with an opportunity to receive another credit tranche even if Kiev announces Russia’s loan default.

"The statements made by the IMF evidence that the fund is ready to review its rules for Ukraine’s benefit. Even in case the credit (to Russia — TASS) is acknowledged as intergovernmental and Kiev does not repay it the IMF will still provide lending to Ukraine," Suslov said.

In December 2013, the presidents of Russia and Ukraine Vladimir Putin and Viktor Yanukovych agreed that Moscow would grant Kiev a credit worth $15 billion through the placement of Ukrainian securities. Under this program bonds for 3 billion dollars were placed on the Irish Stock Exchange on December 20, 2013. Russia purchased the bonds using the funds from its National Welfare Fund.

As was reported earlier Russian Finance Minister Anton Siluanov said if Kiev fails to pay $3 billion in December, Moscow would go to court. "If in December, the debt is not repaid, appropriate legal action will be taken to protect the interests of the Russian Federation as a creditor," the Minister said. He added that "the Ukrainian authorities had been repeatedly informed by the Russian side that Russia expects debt payment in full and on time".
  [tass.ru]
29/10/15
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