Yatsenyuk threatens to freeze payments on Ukrainian debts next week
Prime Minister of Ukraine Arseniy Yatsenyuk said that Kiev will freeze its debt payments if it is not possible to conclude an agreement with private creditors on debt restructuring in the very near future.
According to him, the payment of interest to Western creditors and Russia may stop as early as next week.
As Yatsenyuk, who recently returned from Washington, explains, Kiev needs funds to fight pro-Russian armed groups, and he does not intend to pay the debts of the former President Yanukovych.
“Today Ukraine spends as much on servicing external and internal debt as on defense,” the prime minister said at a government meeting. “The budget cannot allow this - and not only the budget.”
“The Ukrainian people can no longer live like this,” he said.
Yatsenyuk said that the International Monetary Fund gave the Government of Ukraine a few more weeks to enact the laws necessary for obtaining new loans.