The City Council of Kyiv is considering a moratorium on the re-payment of the foreign debt of Kyiv

10/2/15

The City Council of Kyiv will look into the possibility of imposing a moratorium on the re-payment of Kyiv’s foreign debt. As the Mayor of Kyiv, Vitali Klychko, informed, the Permanent Commission for the City Budget, Social and Economic Development was ordered to consider this option.

“Now we have to re-pay the loans taken by Kyiv 10 years ago. In 2005 our predecessors took loans amounting USD 250 million by the official exchange rate of the National Bank of Ukraine with an interest rate of 8.8% per year and maturity of the principal part of the loan in 2015. According to the actual exchange rate, these loans amounted to UAH 5.5 billion. We have re-paid our energy debts and debts to municipal employees. We have also adopted a well-balanced, socially-oriented budget for 2015,” the mayor of Kyiv said.

According to Mr. Klychko, Kyiv is now getting ready for the winter season and is spending its funds mostly on heating and energy supplies, repairing and insulating houses and buildings and installing energy consumption meters.

“We are also doing our best to support disadvantaged groups of citizens. That means free use of public transport as well as discounts on selected medicines and bread. We are also spending to maintain our infrastructure – repairing motorways, building schools and kindergartens. Kyiv must have sufficient funds to maintain itself and to supply its residents. This is our priority for now,” Vitali Klychko pointed out.

According to the current legislation, the City Council of Kyiv can temporarily stop payments on its foreign debt. The Budget Commission of the City Council received an order on Thursday to check the possibility of the moratorium on debt re-payment.

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