The Ukrainian authorities are considering the possibility of using Russian assets frozen abroad to repay sovereign debt, writes Bloomberg with reference to sources familiar with the progress of discussions.
According to the publication, by the beginning of September, Ukraine will have to pay off $ 1.4 billion public debt, taking into account coupon payments. At the moment, the authorities are considering several options for solving the problem, but all of them are in different stages of study. Bloomberg notes that the International Monetary Fund (IMF) takes an active part in the study of scripts, but the fund refused to disclose details.
Among the options that Ukrainian authorities are considering are negotiations with the holders of public debt and a revision of existing agreements regarding the issue of repayment in September. Another option is the use of frozen Russian assets abroad as a bail for a public duty, so the holders of the papers will receive guarantees for the impossibility of direct payments, however, legal difficulties may arise with this option due to the differing approaches of the authorities of different countries to the fate of assets. If Ukraine manages to reduce the debt burden, then it will be able to more effectively use financial support from the allies to confront with Russia and restore the destroyed economy, the publication notes.