Ukraine reaches deal with international creditors to cut debt load

Ukraine has reached a crucial deal with its international bondholders that will help prop up its government finances and keep the struggling country from defaulting on its debt.

Prime Minister Arseniy Yatsenyuk announced Thursday that the value of Ukraine's $19 billion sovereign debt will be cut by 20 percent to $15.5 billion.

A statement released by the finance ministry said the deal would also extend the payment period on the government bonds by four years through 2027.