BCN-08 Ukraine rules out debt default: top Zelensky aide

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ZCZC

BCN-08

UKRAINE-ECONOMY-IMF

Ukraine rules out debt default: top Zelensky aide

KIEV, May 29, 2019 (BSS/AFP) – Ukraine has ruled out rejecting the
International Monetary Fund’s bailout programme and defaulting on its
external debt, a top official said Tuesday.

“We have agreed that we will actively cooperate with the IMF,” Oleksandr
Danylyuk, a top aide of Ukraine’s new president Volodymyr Zelensky, told
reporters after a meeting with an IMF mission.

“Our cooperation continues. This is an important message for investors,
for whom our cooperation with the IMF is an important indicator,” he added.

Ukraine is dependent on foreign financial assistance and last week an IMF
team arrived in Kiev to review progress on implementing previously agreed
reform measures.

Zelensky, who was a comedian before being elected as leader last month,
has indicated his intention to find ways to further cooperate with the IMF.

But concerns were sparked after Igor Kolomoisky, an influential oligarch
with links to Zelensky, suggested on Sunday that Kiev should reject the IMF’s
austerity programme.

Danylyuk, a respected economist and former finance minister who was
appointed as Secretary of the National Security and Defense Council on
Tuesday, shrugged off the idea.

“Such solutions are not even considered,” he told reporters, referring to
the possibility of default.

“I do not think the president is listening to such advice now,” Danylyuk
added.

In December, the IMF board approved a new loan package for Ukraine and
released a first tranche worth $1.4 billion.

But, according to the Eurasia Group think-tank, the IMF is unlikely to
finalise any new agreement until it knows who will lead the new government.

BSS/AFP/HR/0935