Ukraine is not on the verge of default – FinMin

KYEV, March 13 (BestGrowthStock) – Ukraine is not on the verge of
default despite severe budget holes, newly appointed Finance
Minister Fedir Yaroshenko said on Saturday.

The government pension fund alone is short of 25 billion
hryvnais ($3.1 billion), and investors worry Kiev might have
problems repaying its short-term domestic debt, which it has
been issuing in increasing volumes and at sky-high yields as an
economic crisis takes its toll.

“The previous government has masked that the financial
state of the country was on the brink of catastrophe … I
assure you there is no (threat of default),” Yaroshenko said.

Ukraine needs to find $3-5 billion a quarter to cover
budget spending and Yaroshenko confirmed the government will
stick with its social obligations despite empty state coffers
and rising public debt. [ID:nLDE628276]

He did not specify the potential sources of the funds the
country needs to make up for the budget shortage.

The Ukraine’s new Prime Minister Mykola Azarov earlier
indicated the government could seek to renegotiate the IMF
programme agreed by the former government.

The International Monetary Fund has already said it would
consider Ukraine’s request to restart its $16.4 billion loan
programme, suspended last year in the run-up to presidential
elections. [ID:nN12166864]

Stock Research Tools
(Reporting by Natalia Zinets; Writing by Dmitry Sergeyev;
Editing by Jerry Norton)

Ukraine is not on the verge of default – FinMin