The International Monetary Fund called upon Ukraine and its creditors to “proceed quickly” in talks to restructure $23 billion of debt.
“The Ukrainian authorities have been engaged in collaborative discussions with bondholders,” an IMF spokeswoman said by e-mail on Wednesday. “These discussions need to proceed quickly to achieve these objectives in line with the three targets specified in the authorities’ Fund-supported program.”
The IMF has previously asked Ukraine to make progress in agreeing new terms with creditors before the fund releases the next tranche of a $17.5 billion loan next month. The targets of the restructuring include a goal to save $15.3 billion over four years, lower debt-to-gross domestic product and budget financing needs.
The talks between Ukraine and a creditor group led by Franklin Templeton have stumbled amid a disagreement over whether a reduction in the face value of the bonds is needed. While the IMF has previously described the restructuring as “vital,” it has stopped short of saying whether it will hold back loan payments if the targets of the restructuring aren’t met.