KIEV, Sept. 1 - Moody's Investors Service says the risk of Ukraine's default on its payments remains in place even before it starts settling its foreign debt, the restructuring of which has been cleared with the ad hoc committee of creditors.

Moody's said in a report that it anticipates problems with the Ukrainian economy's recovery within the next several years following the significant GDP drop and inflation hike. Moreover, the agency believes the situation has been complicated by deep political disagreements and the ongoing military conflict in eastern regions, which has led to the loss of a number of major industrial assets.

In addition, the bond restructuring deal concluded recently does not cover $1.8 billion in other obligations, including Eurobonds held by the city of Kiev and Ukrzaliznytsia, and government-guaranteed loans.