Ukraine says first debt proposal does not meet targets

WASHINGTON (Reuters) - The first proposal by a committee that represents nearly half of Ukraine's creditors does not help the government achieve all its targets for debt restructuring, Ukraine's finance minister Natalia Yaresko said on Friday.

After a year of war and political upheaval that has seen its currency plummet and sent its economy into a tailspin, Ukraine agreed a $17.5 billion, four-year bailout facility with the International Monetary Fund last month. The deal obliges Kiev to restructure at least $15.3 billion of outstanding debt.

"Their first proposal …. doesn't appear to meet the needs of Ukraine with regard to three targets," Yaresko told reporters after an event in Washington, in reference to the IMF's targets for debt sustainability.

"It includes only a maturity extension," she said, adding that the creditor committee represents some $10 billion (6.67 billion pounds) of the $23 billion in outstanding debt which Kiev seeks to restructure.

Ukraine is set to meet with its creditors later on Friday in Washington to discuss the proposal and update investors on the status of its restructuring operations.

(Reporting by Anna Yukhananov; Editing by Andrea Ricci)