Ukraine does not agree on certain of foreign debt restructuring principles, proposed by the committee of creditors, holding in aggregate approximately $10 billion of instruments within the perimeter of Ukraine's debt operation, reads a Finance Ministry presentation for the creditors, promulgated at a meeting in Washington on Saturday night.

"The advisors to this committee have forwarded to the Ukrainian side a paper describing certain restructuring principles. Ukraine does not agree on certain of these principles," reads the document.

According to the document, in the spirit of the creditor consultation process announced in March, Ukraine is currently engaging at the advisor-to-advisor level with the committee. The Finance Ministry said that the committee, consisting of five creditors, attracted Blackstone and Weil, Gotshal & Manges LLP as advisors.

"Negotiations with the creditors will take place in April and May. The talks will aim at achieving IMF targets, being targets 1-3 for sovereign, sovereign guaranteed, but only target 1 for state-owned entities," reads the presentation.

The IMF-proposed restructuring plan for Ukraine should enable it to attain three targets, target 1 being to generate $15.3 billion savings in public sector financing during the IMF program period, target 2 being to bring the public and publicly guaranteed debt/GDP ratio under 71% of GDP by 2020, and target 3 being to keep the budget's gross financing needs at an average of 10% of GDP in 2019-2025 (maximum of 12% of GDP in any given year), the presentation says.

As reported, after the IMF had endorsed a new four-year extended fund facility for Ukraine for $17.5 billion, the Finance Ministry started consultations on debt restructuring with creditors on March 13. The government also included Kyiv's eurobonds and the foreign debt by state-owned Oschadbank, Ukreximbank, and Ukrzaliznytsia in the restructuring plan. However, the said borrowers will have to negotiate their debt restructuring with the creditors as separate legal entities.

At the same time, major holders of Ukrainian bonds are unwilling to agree to the cancellation of the principal debt, arguing that the size of the debt relief proposed is too big.