Risks to Ukraine turnaround 'exceptionally high', IMF says

By Chris Vellacott LONDON (Reuters) - Efforts to restore financial stability in Ukraine face "exceptionally high" risks from further conflict and disgruntled creditors, the International Monetary Fund said on Thursday. In a report by IMF staff released after the fund announced a $17.5 billion (11.7 billion pounds) loan package, the IMF said the programme it was backing and Ukraine's journey back to economic health are most vulnerable to being derailed by renewed conflict in eastern Ukraine. Debt-restructuring talks with holders of its sovereign debt, who include top fund managers Franklin Templeton, Blackrock and PIMCO, are due to begin on Friday, according to Finance Minister Natalia Yaresko. "The negotiations may be protracted, particularly as some creditors have large positions in specific bond issues." The financing package assumes $5.3 billion debt relief from the restructuring this year, $3.4 billion next year, $4.4 billion in 2017 and $2.3 billlion in 2018.