Ukrainian Min of Finance: 'West should provide more then 40 billion dollars, bankruptcy will cost more'.

Ukrainian Min of Finance: 'West should provide more then 40 billion dollars, bankruptcy will cost more'. (vz.ru) [GoogleTranslate].

One of the largest Ukrainian state-owned banks - Ukreximbank - threatens to default.

The only way out of this situation - the consent of holders of notes in the amount of $ 750 million to extend the maturity of these securities. This period, according to The Sunday Times, expires at the end of this month. Material edition leads InoTV .

The author notes that last week, the international rating agency Fitch downgraded the credit rating of Ukreximbank to "C", while noting that a default on external debt of the bank "is now inevitable."

Recently, the Ministry of Finance of Ukraine appealed to the creditors of the bank with a request to extend the maturity of the securities, which was announced on the background of the negotiations between Kiev and "holders of bonds of the City and Wall Street" about the huge Ukrainian debt.

Head of the Ukrainian Ministry of Finance Natalya Yaresko urged creditors to "forgive" Ukraine more than 15 billion debt. According to The Sunday Times, itself a default Ukreksimbanka not lead to a breach of Kiev any loan agreements. But here's the response to the request of creditors Yaresko will be an indicator of a vector will be given a large-scale negotiations on the restructuring of the Ukrainian debt.

The publication stresses that the holders of Eurobonds, led by US investment fund Franklin Templeton  are «furious" from the announced before the start of negotiations "insistence" Natalia Yaresko that creditors will have to write off a portion of the external debt of Ukraine. 

The head of the Ukrainian Ministry of Finance stressed that the question of its restructuring should be resolved before the end of May, so that Ukraine was not out of the program IMF assistance.

Recall that in late March Yaresko stated that the West should provide additional financial assistance to Ukraine in addition to the package of 40 billion dollars, as the country is bankrupt will cost more. 

"I firmly believe that" Seven "and to be honest, as the" Group of Twenty "now have a responsibility to provide financial assistance to Ukraine on a larger scale," - stated Yaresko.

Earlier on Sunday celebrated the Agence France-Presse, Ukraine rocked by a series of crises, because of which she threatened decades of dependence on external assistance.

March 12 The International Monetary Fund has sent Ukraine the first tranche of financial assistance in the amount of $ 5 billion in total this year it will be allocated 10 billion. The money would not be used for social needs , they will go to pay off the national debt.

Meanwhile, prices for electricity, gas, heat and hot water rose to the population of Ukraine on April 1. According to the agreement between the Cabinet of Ministers of Ukraine and the International Monetary Fund, the average price of gas for the population increased by 285%.

Tariffs on light for the population of Ukraine also will be increased by 3.5 times in two years. In addition, water tariffs for the population will increase to 4-100% from May 1, due to the rising cost of electricity.

The International Monetary Fund believes that the decline in the economy of Ukraine in 2015 will amount to 5.5%. In addition, the IMF experts believe that in 2015 Ukrainian exports fell against the general deterioration of trade.

"ARAB WINTER" - IMF postpones $4.8 billion loan to Egypt, PM calls for ‘social dialogue’.

"ARAB WINTER" - IMF postpones $4.8 billion loan to Egypt, PM calls for ‘social dialogue’.(AA).The International Monetary Fund (IMF) has postponed a $4.8 billion loan to Egypt after linked economic belt-tightening steps were suspended.
Meanwhile, Egypt’s Prime Minister Hesham Qandil defended President Mohammed Mursi’s recent decision not to increase taxes and called for a “social dialogue” on the tax measures.
The IMF deal delay will be a blow to the government as it was seen as vital to reassuring investors and donors about the country’s economic plans.
The IMF board was scheduled to meet to discuss approving the loan on Dec. 19 after a preliminary agreement was reached during a visit by an IMF team to Cairo last month. The IMF had said Egypt must keep policy steady for the loan to go through.
"In light of the unfolding developments on the ground, the Egyptian authorities have asked to postpone their request for a Stand-By Arrangement with the IMF," a Fund spokeswoman told Reuters in a statement.
"The Fund remains in close contact with the authorities, and stands ready to continue supporting Egypt during the ongoing transition and to consult with the authorities on the resumption of discussions regarding the Stand-By Arrangement," the spokeswoman said.
"He said the delay would give officials time to explain an economic reform package after media criticism prompted the government to postpone measures that were part of the program.
In a televised speech on Tuesday, Prime Minister Qandil, who criticized the media’s “erroneous” reporting over Mursi’s tax scrap said a “social dialogue” meeting will take place next week to explain the government’s tax project.
There are two pillars that will decide the upcoming project, according to the minister. These pillars, he said, are “never to affect those with limited income” and “achieve social justice.”
He emphasized that prices of basic goods such as bread, gas, sugar and tea will not see any hikes.
Two days ahead of mass rallies to protest a draft constitution the president had put for vote on Dec. 15, Mursi scrapped measures to raise sales taxes on a wide range of consumer goods such as cigarettes, soft drinks, oil, beer, cement and fertilizer, mobile calls and water.
Mursi’s tax raise decision in a time of political turmoil stunned even the closest of his allies.
Some critics said that the suspicion of the tax hike could lead to the cancellation of the $4.8 billion IMF loan Egypt is waiting for.
They also criticized the government for not consulting with business associations such as the Federation of Chamber of Commerce and Egyptian Tax Association that have expertise about the issue.
The Freedom and Justice party, the political arm of Mursi’s Muslim Brotherhood movement said in its “permanent position” was to reject any economic policies that would increase the burden on low-income groups.Hmmmm..........How's that 2 billion dollar financial package Turkey and Egypt agreed on coming along?Read the full story here.