This is the third loan Ukraine is to obtain by the end of this year in the framework of the Extended Fund Facility.
IMF may give a loan to borrowers who fall behind in payments to official creditors, in case they satisfy the IMF that the country is making progress on reforms and is ready to negotiate with the creditor country. Vladimir Putin's administration may challenge Ukraine’s ability to pay debts and hold constructive talks, according to edition citing its own source.
However, the Kremlin must be aware that such actions will cause resistance from the US and its allies, who control the majority of votes in the IMF Executive Board.
Reminder: the creditors agreed to write off $ 3 billion of Ukraine’s debt following a debt restructurion of USD 8.5 billion. Thus, in the next 4 years Ukraine will not pay the credit.
Russia has refused to participate in the restructuring of the Ukrainian debt and threatened with the court in case it’s not repaid.
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