By David Lawder
WASHINGTON (Reuters) -Ukraine’s debt restructuring talks with bondholders and other creditors are ‘on track,’ with discussions continuing, International Monetary Fund spokesperson Julie Kozack said on Thursday.
Kozack told a regular news briefing that the IMF board would consider a staff-level agreement for the latest review of Ukraine’s $15.6 billion IMF loan program in the coming weeks. The agreement, announced on May 31, would release a $2.2 billion disbursement to Kyiv.
Kozack did not provide details on the debt discussions. Ukraine’s program with the International Monetary Fund stipulates that the country should restructure its commercial debt – which includes some $20 billion outstanding in international bonds – though the Fund has not prescribed a timeline.
Kyiv itself also wants to retain access to global capital markets.
She said that a new debt sustainability analysis to be published in a staff report upon board approval of the Ukraine review would contain more details on how much debt relief is needed.
“So in a sense, what the Fund does is we look at the macroeconomic conditions and we look at the amount of debt relief that would be needed in order to bring debt to a sustainable level,” Kozack said.
She said Ukraine’s performance in implementing reforms and meeting loan program’s targets “has remained strong despite the challenges of the war.” Ukraine’s economy has proven resilient, but risks resulting from Russia’s stepped up attacks are rising, she added.
Kozack also identified some key reforms that Ukraine needs to pursue to keep the loan program on track, including completing an external audit of the National Anti-Corruption Bureau and to amend the country’s Criminal Procedure Code by the autumn of this year.
She also said that Ukraine needs to enact a law to establish a new high administrative court by the end of 2024.
