The International Monetary Fund (IMF) expects Ukraine to continue to service its foreign debt, an IMF spokesperson has said, as speculation grows that Kyiv could default on its debt as the battle against Russia’s invasion rages on.
At the moment, Ukraine is servicing its debt in an orderly way, IMF spokesperson Gerry Rice told a scheduled news briefing. “We would expect that to continue.”
He said the Fund sees international community grant financing as a priority for the immediate and short term, as “that would allow the Ukrainian government to remain operational without incurring further debt”.
Ukraine’s state-owned gas company, Naftogaz, asked its international creditors earlier this week to allow for a two-year deferral on debt payments, raising bets that the country’s sovereign debt could follow.
Creditors were urged on Thursday to reject the company’s request.
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