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Ukraine: IMF rides to Kiev’s rescue with £26bn aid package

UKRAINE’S creditors have granted debt relief to the crisis-ridden country, the government said yesterday.

The deal, in stark contrast to Greece’s treatment at the hands of the creditor “troika,” is part of a broader £26 billion financial rescue package agreed by the International Monetary Fund (IMF).

US-backed Prime Minister Arseniy Yatsenyuk said that holders of Ukrainian bonds will write off 20 per cent of their holdings, shrinking £12.5bn in sovereign debt to £10bn. The deal will also extend the payment period on the government bonds by four years to 2027.

Payments on the bonds will depend on the growth rate of the economy, which has collapsed following the far-right coup last year and the resulting civil war.

Seven Ukrainian troops were killed and 13 injured in fighting with anti-fascist forces in the eastern Donbass region on Wednesday and Thursday. A renewed bid to end ceasefire violations starts next week.

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