Ukraine's new debt proposal could include growth-linked instrument - source

KIEV (Reuters) - Kiev is ready to include in a restructuring proposal to be tabled on Friday an instrument allowing its creditors to recover more value if Ukraine's economy performs better than currently projected, a source with knowledge of the negotiations said.

"The proposal now is saying...let us agree on an instrument that will kick in case the situation turns out to be better than we currently envisage," the source said on condition of anonymity.

Ukraine has to come up with $15 billion of savings over the next four years by restructuring sovereign and quasi-sovereign debt as part of an IMF-led $40 billion economic rescue package.

Also on Friday, Ukraine Finance Minister Natalia Yaresko said Kiev would submit an updated proposal to its creditors later in the day, and would continue to service all its debts.

(Reporting by Natalia Zinets, writing by Karin Strohecker, editing by Nigel Stephenson)