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U.S. Congress puts forward an initiative on writing off Ukraine's debt

The U.S. Congress put forward an initiative on writing off Ukraine's debt. Photo: pixabay.com

The U.S. Congress put forward an initiative on writing off Ukraine's debt. Photo: pixabay.com

On Wednesday, the U.S. House Committee on Financial Services passed a bill on assistance to Ukraine in servicing the debt, reducing it and raising financing on concessional terms.

The legislative initiative was supported by 362 Congressmen, 56 opposed, according to The Hill.

It was passed along with a package of anti-Russian bills providing for the imposition of various sanctions against Moscow.

The bill was sponsored by Illinois Democrat Jesus Garcia. The initiative he formulated involves that the U.S. representatives in "every international financial institution" will seek "immediate suspension of all debt service payments" that Ukraine has to such an organization.

In addition, the document instructs the U.S. administration to insist on "comprehensive debt relief for Ukraine" in dialogue with both commercial and sovereign creditors, including the Paris Club.

The bill requires representatives of the U.S. government in international financial institutions to work to ensure that these structures provide "concessional financial assistance" to Ukraine. If the initiative acquires the force of law, its duration will be seven years.

Recall, the day before, the U.S. House of Representatives approved a large-scale aid package providing for support to Ukraine for a total amount of about $40 billion. The document was supported by 368 legislators, 57 opposed.

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