IMF urges Ukraine, creditors to advance debt negotiations in line with program targets

Julie Kozack, Director of the IMF's Communications Department, stated during a press briefing in Washington that the Fund is urging both the Ukrainian government and its creditors to continue working toward an agreement that aligns with the debt sustainability benchmarks outlined in the IMF-supported program, as well as Ukraine's own announced strategy.

She noted that in some cases, the outcome of such negotiations could influence the review of the ongoing IMF program, particularly if IMF experts conclude that Ukraine is not meeting the lending policy requirements related to debt obligations.

In light of this, Kozack reiterated the Fund's call for the Ukrainian authorities to make good-faith efforts to reach an agreement that reflects the debt sustainability targets.

As reported, Ukraine missed a $665 million payment on GDP-linked warrants due on June 2 -- instruments introduced during the 2015 debt restructuring process. Following the missed payment, international ratings agency S&P Global downgraded Ukraine's GDP-linked bond rating from "CC" to "D" (default).