Franklin Templeton and four other leading Ukraine creditors have set up a committee to negotiate debt-restructuring terms with a government struggling to avert a default, according to Bloomberg, with reference to its source.

According to the report, the group is being advised by Blackstone and Weil, Gotshal & Manges LLP.

As reported, after the IMF had approved a new four-year EFF program worth $17.5 billion for Ukraine, the Finance Ministry from March 13 started consultations with creditors on foreign debt restructuring to reduce maintenance and repayment costs by $15 billion during the period of the program. The Cabinet of Ministers proposed including the eurobonds of Kyiv, state-controlled Oschadbank and Ukreximbank, as well as Ukrzaliznytsia in the restructuring of Ukraine's debt obligations, however these borrowers will hold consultations with the creditors on the terms of restructuring their loans as separate legal entities.