LONDON, June 11 - Ukraine can't meet IMF terms for a bailout unless creditors write down 40 percent of the sovereign bonds they hold, a source said on Thursday in comments that suggest talks are deadlocked, Reuters reported.

Finance Minister Natalia Yaresko suggested the 40 percent write-down, or haircut, on the bonds earmarked for restructuring during a visit to Washington on Wednesday.

A source familiar with the discussions and close to the Finance Ministry told Reuters: "The ministry has calculated that a 40 percent haircut is needed to hit IMF targets."