Rep. Kaptur Heralds Landmark Ukraine Debt Restructuring Agreement
Renews call for U.S. defensive and humanitarian aid to Ukraine
WASHINGTON, D.C.— Congresswoman Marcy Kaptur (OH-9) celebrated news that the government of Ukraine has reached an historic debt restructuring agreement, preventing the threat of default for a democratic nation currently defending its eastern border against Russian-backed separatists.
“This landmark agreement reflects the strong consensus in the global community that Ukraine’s long-term prospects are bright,”said Rep. Kaptur. “However, the need for this kind of deal should remind the world that Ukraine remains under attack and deserves support. As the greatest beacon of freedom in the world, the United States has a responsibility and an interest in standing up for other free nations. Ukraine is our sister in liberty and it is in our interest to come to her aid now in a time of her great need.
“I also add my fervent congratulations to the new generation of Ukrainian leaders who refuse to accept the grim limitations of the past and are leading Ukraine into a new era of promise politically, economically, and socially. Ukraine's people deserve to be free and prosperous.”
The deal, announced yesterday by Ukrainian finance minister Natalie Jaresko, includes a 20 percent write-down on approximately $18 billion of foreign debts in return for securities that reward investors with a percentage of Ukraine’s economic growth from 2021. Other debt payments will also be deferred for four years in exchange for a higher interest rate on some bonds.
Arseniy Yatsenyuk, Prime Minister of Ukraine, heralded the news saying, “There was little hope that Ukraine would successfully conclude negotiations with our external creditors. The default so much expected by our enemies is not going to happen.”
Natalie Jaresko, Minister of Finance of Ukraine, observed, “The first half of 2015 has been challenging for Ukraine’s economy, and the Ukrainian people have paid a very heavy price. Today’s agreement will enable us to share this burden in a more equitable fashion with our international partners. Moreover, this deal achieves the objectives of the debt operation as agreed in the Extended Fund Facility program earlier on this year and is supported by the IMF. Throughout the negotiations, the Ukrainian government has demonstrated that it is acting in good faith and as a responsible partner. We made every effort to avoid a default – a rare successful case in the history of similar debt restructurings.”
The United Kingdom Foreign and Commonwealth Office also issued the following statement about the deal:“We welcome the debt restructuring agreement announced yesterday between the Government of Ukraine and the creditor committee. The deal, together with the package of IMF-led international support, will help give the Government of Ukraine the space it needs to continue its wide-ranging and ambitious plans for reform. We fully support the efforts of the Government of Ukraine and urge all parties subject to this agreement to take all necessary steps to ensure its success.”
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