KIEV (Reuters) - The Ukrainian government approved on Saturday the framework for Ukraine’s debt restructuring operation through which it aims to generate $15.3 billion, the Finance Ministry said in a statement.
Ukraine is due to start talks on a fast-track debt swap with investors including Franklin Templeton, PIMCO and Blackrock as part of a $40 billion bailout approved with the International Monetary Fund last month.
The Finance Ministry reiterated that Kiev wants a deal in place by end-May, before the IMF carries out its June review.
“As per the IMF Program, negotiations with creditors must be finalised by 1st review (in May 2015),” it said.
It gave no new details on what terms Kiev would propose to investors in talks.
Talks were expected to start last week, but on Wednesday creditors said Ukraine had yet to send the restructuring proposals to bondholders.
The three targets of the debt operation are to generate $15.3 billion in savings, bring the public and publicly-guaranteed debt-to-GDP ratio under 71 percent by 2020 and keep the budget’s gross financing needs at an average of 10 percent of GDP in 2019-2025, the Finance Ministry said.
Ukraine has included all outstanding Eurobonds placed before February 2014 in the debt operation.
Reporting by Alessandra Prentice; Additional reporting by Natalia Zinets Editing by Jeremy Gaunt