Russia says Ukraine has violated loan terms, no decision on repayment: agencies
(Reuters) – Ukraine has violated the terms of a $3 billion Russian loan but Moscow has not yet decided whether to demand early repayment, Russian Finance Minister Anton Siluanov was quoted on Saturday as saying.
Russia lent the money in December 2013 by buying Ukrainian Eurobonds, two months before Ukraine’s then-president, the pro-Moscow Viktor Yanukovich, fled the country amid mass protests against his rule.
The terms of the loan deal included a condition that Ukraine’s total state debt should not exceed 60 percent of its annual gross domestic product (GDP).
Last month, rating agency Moody’s estimated that Ukraine’s debt amounted to 72 percent of GDP in 2014 and would rise to 83 percent in 2015. It also said “the risk of default is rising”.
“Ukraine has definitely violated the terms of the loan, and in particular (the condition) not to increase its state debt above 60 percent of GDP,” Russia’s Siluanov said, according to Interfax news agency.
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