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Ukraine finance minister: Restructuring deal meets 'all of its targets'

By Jared M. Feldschreiber
Ukrainian Finance Minister Natalie Jaresko says the deal to restructure the country's debt does what it needs to do. Photo courtesy of U.S. Embassy in Kiev/WikiCommons
Ukrainian Finance Minister Natalie Jaresko says the deal to restructure the country's debt does what it needs to do. Photo courtesy of U.S. Embassy in Kiev/WikiCommons

KIEV, Ukraine, Aug. 28 (UPI) -- Ukraine Finance Minister Natalie Jaresko said Friday that the deal to restructure the country's debt meets "all of its targets."

The Ukrainian government announced Thursday it had reached a deal with its creditors that includes a write-off of up to $3.8 billion. Ukraine's debt -- estimated at $19 billion -- would be cut by 20 percent and its repayment extended.

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"There is no question that there are risks," Jaresko told Bloomberg. "The risks are... [part of ] what caused this to begin with, which is the illegal annexation of Crimea... and the invasion and occupation of Russian troops in eastern Ukraine. The war needs to stop. And if the war were -- God forbid -- to expand, that would put additional pressure on the country. But we're very hopeful that the Minsk agreements will be fully implemented -- our president works on it daily... And we're very hopeful that, in fact, the situation, will improve."

Last November, Euromaidan protests began in Kiev's Independence Square to challenge the authoritarian leadership of its then-President Viktor Yanukovych. The president's turning away from a long anticipated deal with the European Union in exchange for a $15 billion bailout from Russia prompted protests from ordinary Ukrainians.

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The debt deal comes after months of a stalemate in negotiations between Ukraine and its main creditors over about $19 billion worth of bonds, The Wall Street Journal reported.

Russian Foreign Minister Anton Siluanov said Russia would not participate in the Ukraine restructuring deal.

"We identify ourselves as official creditors. The settlement of the debt is first with the commercial creditors. The settlement of the debt to official creditors, with countries like Russia, is considered completely separately," Siluanov said in an interview with Rossiya-24.

Ukraine has been negotiating the restructuring of its debt since March. Jaresko also said that she is seeking additional loan guarantees in 2016, as well as more financing from Europe and the World Bank.

"I'm hopeful that there will be no holdouts -- including the holders of the so-called Russian bond. But that is their decision to make when they see the full text of the launch and the proposal made for the exchange," she said. "People are very happy we don't have to resort to a moratorium and default... I think there is a great deal of support."

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