US Treasury Hints at 'Sacrifices' In Exchange for Restructuring of Ukranian Debt
U.S. Treasury officials warned that everyone would have to make sacrifices if the IMF were to continue funding Ukraine, but said that it would be in everyone's best interest.
U.S. Treasury Secretary Jacob Lew yesterday hinted at Washington's support for a possible debt restructuring program for Ukraine, indicating that everyone would have to make some sacrifices for the benefit of the country's reconstruction.
Lew's comments came after a meeting on Tuesday with Ukrainian Prime Minister Arseniy Yatsenyuk and Minister of Finance Natalia Yaresko.
"He (Lew) said that the IMF restructuring program requires a mutual sacrifice from all stakeholders to ensure the country's economic recovery. We believe it is in the best interest of all concerned parties," said a spokesperson for the Ministry of Finance to RIA Novosti after the meeting between Lew, Yatsenyuk and Yaresko.
The U.S. previously hinted at its desire to restructure Ukraine's debt to private creditors. A similar position was expressed on Tuesday by David Lipton, the Deputy Director of the IMF. A senior IMF official added that the organization could continue to fund the Ukraine, even if it defaulted on its repayments to private creditors.
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