The National Bank of Ukraine supports the adoption of the Law on providing the Cabinet of Ministers of Ukraine with the right to terminate repayment of commercial external debts of the state as may be necessary.

Providing the Ukrainian Government with such right does not establish any preconditions for disruptions to financial market stability, in particular, to banking system of the country or its exchange rate.

It’s important that the law only provides the Government with the right as may be necessary to use the opportunity to terminate repayment of commercial external debts of the state but shall not oblige the Government to it. Thus, the law could be never applied in practice in case of positive course of negotiations with creditors.

Moreover, such legislative act must also be present among measures for stabilization of situation in the market of any state. This way, the economic security of the state is ensured as well as protection of public interest and interest of the state due to the repayment and servicing the public debt and state-guaranteed debt.

Let us remind you that on 11 March 2015 the IMF Board approved the Extended Fund Facility Arrangement, under which the Ukraine’s obligation to reach debt indicators is provided.

Today, the negotiations with liabilities owners for reaching arrangements on acceptable level of external debt burden and debt service, as mentioned in Arrangement with the IMF, are in progress.

National Bank of Ukraine hopes for and expects successful completion of negotiations and fulfillment in this way of the IMF requirement in full scope.