Ukraine President Petro Poroshenko has signed a bill allowing the government to impose a moratorium on debt repayment.<br /><br /> The law will allow the government to suspend external debt repayment to private investors and remains in force until July 2016.<br /><br /> The Ukranian government says it made the move in order to protect state assets. <br /><br /> Financial analysts predict it is the first step towards a default on its liabilities.<br /><br /> Investors are considering debt extensions as an option.<br /><br /> Ukraine must repay a crippling $4.3bn in the fourth quarter of 2015, $3bn to Russia, Moscow has made it plain it has no interest in renegotiating the debt, which matures in December.<br /><br /> In June Kyiv must handover $75mn in Eurobonds to Russia or end up in court.<br /><br /> Ukraine’s external debt is running around $30bn, while its internal debt is $17bn, according to the government.<br /><br /> The country’s gold and foreign currency reserves amount to less than $10bn.
