World Economy

Kiev Could Default

Kiev Could DefaultKiev Could Default

As Ukraine’s $3 billion Russian debt deadline looms, President Petro Poroshenko’s government is considering its options, including default, RT reported. Kiev could default if it fails to make repayment on the $3 billion Eurobonds maturing this December, said the Ukrainian Finance Minister Natalie Jaresko in an interview with local TV. US-born Jaresko said currently Kiev cannot make the payment because the IMF restructuring program clearly defines the payout procedure. However, the Kremlin has said that “the so-called debt operation, which Russia takes no part in, cannot ease Ukraine’s debt burden,” and that litigation costs and penalty interest for overdue payments would cost Kiev much more than paying on time.