07/15/2015 04:03 EDT | Updated 07/15/2016 01:12 EDT

Ukraine PM "adamant" on striking deal with creditors as technical default looms

OTTAWA — Ukrainian Prime Minister Arseniy Yatsenyuk has called on international creditors to accept his government's debt restructuring plan while touting a new free trade deal with Canada as a boost to business investment and confidence in his embattled country.

His appeal came at the end of a whirlwind visit to Ottawa and ahead of a meeting today where Ukraine's finance minister will meet with private creditors in hopes of forestalling a technical default.

The Ukraine economy is battered by the war with Russian separatists in the east and the government in Kyiv has until July 24 to repay bondholders $120 million.

Yatsenyuk told The Canadian Press that Ukraine's offer, which would see the country repay over half the existing $10 billion debts held in private hands, is largely supported by the International Monetary Fund and G-7 ministers, including Canada's Joe Oliver.

He said they are "very adamant" about striking a deal with the private creditors and bondholders need to realize that they need to contribute to getting the country back on its feet.

Yatsenyuk warned that the government "will do everything in order to lift this huge debt burden."


The Canadian Press