On Thursday, September 17, the Verkhovna Rada of Ukraine has adopted a number of government bills on the restructuring and partial write-off of debts and increasing the living standards and minimum wages. All laws were supported by the constitutional majority - over 300 votes.

Before the vote, Prime Minister of Ukraine Arseniy Yatsenyuk again appealed to the Parliament "to take a responsible decision for the country and millions of Ukrainians - conscious and responsible decision."

He recalled that the adoption of the bill on restructuring and writedown of debts allows to write off $3.6 billion from the debt portfolio, "These are debts that took neither this Government nor this Parliament. These are those debts that have being accumulated for 20 years."

Ukraine additionally saves about $5 billion on interest repayments that it would have to pay for the debt service.

The agreements with creditors, he said, include a four-year extension on repayments: "We have no finances to repay the body of the loan, that’s why over the next four years we will not repay our debt."

Arseniy Yatsenyuk has said that it has been already restructured debts of state-owned banks and public companies, including Ukreximbank, "where our citizens keep their money and where our companies get loans."

We have also restructured state debts of Oschadbank, "This is one of the largest banks in the country, which also keeps our citizens’ money, and this bank is the foundation of financial stability."

"After this decision we are able to further funding from the International Monetary Fund. This means that if Ukrainian Parliament together with the Government and the President keep on conducting complex, unpopular, but necessary reforms - the entire civilized world stands with us. We will receive funds for the financial support and stabilization of the country," said Arseniy Yatsenyuk.

"The more we do the more assistance we get and vise versa," the Prime Minister pointed out.

He focused on the issue of VRI (Value Recovery Instrument - Ed.): "This is the tool that creditors receive in return for writing off debts, incurring losses and not receiving additional funds, but they can gain something in the future."

Arseniy Yatsenyuk stressed the importance of public information regarding such instruments: "I remember when a few years ago it was signed the agreement which brought 16billion of losses to the country. And the country paid off this 16 billion not from profits but from losses and loans that we took and now must repay."

"In case Ukraine keeps on growing, our creditors will receive additional funds – part of a profit of the national economy, not a loss," he stressed.

The Prime Minister listed the conditions under which the creditors will be able to receive part of a profit of the national economy. One of them - the gross domestic product reaches $125 billion, "Today's gross domestic product totals only $85 billion."

"The second condition – the value of Ukraine’s annual economic growth amounts more than 3%. If the Ukrainian economy grows by more than 4%, the creditors, according to the Head of the Government, will receive up to 40% of the value of the Ukrainian economy.

The Prime Minister addressed MPs: "We are not just in difficult, but in very difficult situation. There is no other country in the world that for the last 20 years has been at war with a nuclear state, which is the Russian Federation. After World War II Russia violated world order and stole our Crimea, part of our Donetsk and Luhansk. There is no such a country that has lost 20% of its economy. We have shouldered this historical responsibility. I call on everyone to consciously make this decision."

"This is probably not the last restructuring. But I know for sure that unless this restructuring is done, the future and the financial system of Ukraine will not be just at risk, it will be a financial collapse, which we have to prevent - Ukrainian Parliament, Government, President, people who are responsible for the fate of the state. I ask you to support Ukraine", Arseniy Yatsenyuk emphasised.