The Extended Fund Facility (EFF) of the International Monetary Fund (IMF) with Ukraine, which foresees the restructuring of the sovereign and quasi-sovereign foreign debt of the country, in particular with Ukreximbank and Oschadbank's loan participation notes (LPNs), only requires the prolongation of the terms of their maturity without writing off the principal of the debt and cutting the coupon rates, the Finance Ministry has said.

"Despite the fact that 2015 LPNs and other debt instruments of Ukreximbank and Oschadbank are included in the future debt transactions, they are only to re-profile the liabilities [prolong their maturity term] due to special circumstances towards state-run banks," reads a ministry issued report which was issued on Thursday.

"The implementation of the EFF goals does not require the reduction of the principal of the debt of coupons on these tools," the ministry said.

The ministry said that Ukreximbank will restructure its foreign debt liabilities, starting with the prolongation of the maturity of its 2015 LPNs, for three months.

The ministry said that it took into account a resolution of the National Bank of Ukraine (NBU) of April 14 where the regulator obliged the bank to re-profile its 2015 eurobonds.

"The ministry supports Ukreximbank which asked it to prolong the period of the outstanding 2015 eurobonds for three months to be able to hold negotiations on the prolongation of the maturity term of the bonds for no more than 10 years, without the reduction of the principal of the debt or coupon rates," reads the report.

The ministry said that the inability to re-profile 2015 eurobonds will make it impossible to achieve the goals mentioned in the EFF for Ukraine, as they are a part of the public sector debt which amounts to $5.2 billion and maturing in 2015, the repayment of which is to be postponed.

"All the requirements of the EFF mechanism for the future debt transaction are to be fulfilled to ensure the uninterrupted provision of financial support to Ukraine by IMF and its international partners. The inability of Ukraine to achieve the EFF goals would create large risks for Ukreximbank and for Ukraine in general," the ministry said.