International Creditors Plan to Forgive 20 Percent of Ukraine's Debt

The agreement between the Ukrainian government and its private lenders could be inked by the end of this week, Elaine Moore, an expert on global debt, reported, citing a source close to the negotiations.

However, other sources familiar with the situation told the Wall Street Journal that the deal could fall through since it has not been finalized. Ukraine's Finance Ministry maintains that talks are far from being over and "all options remain on the table."

"There is no agreement yet, negotiations are still going on to meet the IMF targets. The government of Ukraine has taken no decision and all options remain on the table," the agency said in a statement.

The investors were initially strongly opposed to the deal saying the Ukraine government could repair the country's depressed economy without a major debt relief.

Ukraine has been edging economic collapse since the US-sponsored coup brought the current Kiev authorities to power. The country relies heavily on external financial assistance to breathe life into its stagnant economy, plagued by an ongoing civil war, mismanagement and corruption.

The Bank of America named Ukraine the world's third riskiest sovereign borrower, meaning the country could default on its debt.