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Ukraines bonds fell to a record as the IMF was said to have found a $15 billion shortfall in the countrys budget, adding to speculation the government will fail to repay its debts.

The price of Ukraines dollar-denominated bonds maturing in July 2017 tumbled 6 cents to 67.5 cents on the dollar at 5:54p.m. in Kiev, the lowest level on record. The yield surged 4.12 percentage points to 27.42 percent, almost double the yield on bonds maturing in 2023. The UX stock index dropped 2.8 percent, extending a five-day slump to 7.5 percent.

The war-torn country may need to almost double its $17 billion emergency loan within weeks to avoid bankruptcy, the Financial Times reported, citing unidentified officials. Its too early to say how much more aid Ukraine needs, Economy Minister Aivaras Abromavicius said today. Representatives from the International Monetary Fund started a 10-day visit to Kiev yesterday to discuss further payments under the existing program and a possible expansion.

Both the size of the financing which Ukraine needs is so large, and the Western financing likely on offer or available of much smaller size, Tim Ash, London-based chief emerging-market economist at Standard Bank Group Ltd., said by e-mail today.

German Finance Minister Wolfgang Schaeuble was said to have asked Russias Anton Siluanov to delay the repayment of $3 billion in bonds issued to Ukraine last year, according to the Financial Times. Russia has the right to call an early repayment of the notes, due in Dec. 2015, if Ukraines public debt tops 60 percent of economic output.

That ratio may jump to 70 percent by the end of the year, Moodys Investors Service said Oct. 30. Ukraines credit-default swaps are the highest worldwide after Venezuela, data compiled by Bloomberg show.

This significantly raises the chances now of a broader restructuring of Ukraines debt, Standard Banks Ash said. If Russia is now being asked to reschedule, it would logically also ask for the burden to be borne across creditors, and particularly those in the private sector.

To contact the reporter on this story: Marton Eder in Budapest at meder4@bloomberg.net

To contact the editors responsible for this story: Wojciech Moskwa at wmoskwa@bloomberg.net Matthew Brown, Zahra Hankir

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Ukraine Bonds Slump as IMF Said to See $15 Billion Financing Gap