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. Last Updated: 07/27/2016

Ukraine Mulls Debt Restructuring

KIEV -- Ukraine may have to ask foreign lenders if it can delay next year's debt payments, Finance Minister Ihor Mitiukov said Monday, adding that more international aid is the only way to avert such a course.

The government is already working out proposals for restructuring its 1999 foreign debt obligations, but still hopes the International Monetary Fund and the World Bank will resume their aid to Ukraine, Mitiukov told the independent Ukrainian News agency.

The IMF postponed the latest disbursement of a $2.2 billion loan to Ukraine last month over the government's poor tax collection and sluggish reforms. It said it would resume aid only when Ukraine approves a realistic 1999 budget and introduces more reforms.

The delay also halted further disbursement of the World Bank's $950 million aid package, which depends on the IMF's positive assessment of Ukraine's reform policies. Mitiukov said the failure to receive aid in 1999 would mean further destabilization of Ukraine's declining economy and devaluation of the national currency, the hryvna.

Meanwhile, Central Bank chief Viktor Yushchenko said Monday that his agency was capable of keeping the hryvna stable until the end of the year.