Ukraine's government has managed to cut state debt from $73 billion to $66 billion due to debt restructuring and swaps for low-cost, long-term loans, Ukrainian Prime Minister Arseniy Yatseniuk said.

"'Minus $6 billion' will be the answer to those who say that we borrow funds and increase debts. We've learnt how to borrow funds and reduce debts," he said in parliament on Friday.

Budget spending on debt servicing in 2016 will be reduced by UAH 10 billion due to the restructuring of state foreign debt, he said.

Loan participation notes of Ukrzaliznytsia (the Rail Transport Administration), government-guaranteed state debts of Pivdenne Design Bureau and Ukravtodor were also restructured, he added.

As was reported, Ukrzaliznytsia has recently agreed with the creditors' committee on the restructuring of its loan participation notes worth $500 million, and all noteholders will be offered to formalize the restructuring. At the same time, there have been no reports about the restructuring of the loans borrowed by Pivdenne Design Bureau and Ukravtodor.

The Finance Ministry reported that Ukraine's total direct and government-guaranteed debt as of the end of September was $70.61 billion, which was an increase by $0.86 billion since the beginning of the year.

In 2014, Ukraine saw a 4.6%reduction in overall state debt from $73.162 billion.