Ukraine has not been using the funds received as part of loans and international donor programs to fix the holes in its budget, Prime Minister Arseniy Yatseniuk has said.

"The money that we have received as part of international financial assistance has not been spent on re-financing the state budget's deficit. First and foremost, these funds have been used to pay off our external debts. It was not us who borrowed $40 billion for three years. It was [former Ukrainian President] Viktor Yanukovych who did it. And we have now found ourselves in a very difficult situation, but we are coping. Our aim is to duly pay off our country's debts," he said at a Ukrainian government session on Friday.

Making timely payments on Ukraine's debts will help bolster the investment climate in the country, the prime minister added.