LONDON (Reuters) – Ukraine will not be in position to pay financial obligation by 2020-2022 without a considerable financial obligation reduction, a source near Kievs debt restructuring talks told Reuters on Tuesday.
Ukraine is currently trying to work out around $15 billion of debt relief from lenders as part of an IMF-backed economic turn-around plan.Among the possible options are a reduction in the principal, forcing losses onto lenders, and an extension of the debts maturity, offering Kiev longer to pay.If you do not do significant debt decrease, by 2020-2022 you will certainly not be in a position to pay, the source said.There is a course(of analysts and lenders) who desire Ukraine to extend and act. There can be no extend and pretend, the source said, referring to the suggestion that Ukraine can extend bond maturities and later evaluate just how much of a hairstyle it needshas to enforcetrouble bondholders, if any.Those advocating this are asking Ukraine to derail its IMF program, the source said.( Story refiles to include dropped comma to price quote in paragraph 4 )(Reporting by Sujata Rao. Composing by Chris Vellacott)