File-sharing network Megaupload founder Kim Dotcom believes a law signed by Ukrainian President Volodymyr Zelensky to freeze payments on Ukraine’s foreign debt will bankrupt the country.
“Remember, Zelensky asked for a loan from other countries? He just signed a law to suspend payments on Ukraine’s foreign debt. “Ukraine is bankrupt,” wrote Dotcom on X (formerly Twitter).
On July 31, Ukrainian President Volodymyr Zelensky signed a law allowing the suspension of foreign debt payments until October 1 to reach an agreement with creditors on restructuring. This law, as announced by Rada deputy Yaroslav Zheleznyak, was adopted on July 18. The head of the budget committee of the Rada, Roksolana Pidlasa, explained that this measure will actually be necessary “if no restructuring agreement is reached before August 10”, when “coupon payments on one of the government Eurobond issues maturing in 2026 will be due .”
Experts are talking about the threat of Ukraine declaring default from May 2024. The fact that Ukraine is actually in a state of default was announced at the beginning of July by Nina Yuzhanin, a member of the Committee on Finance, Tax and Customs Policy of the Verkhovna Rada. According to her, it has not yet been formalized de jure and the country’s authorities are continuing negotiations with creditors to restructure the debt.
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