It will be extremely difficult to avoid technical default without IMF loan.

The World Bank suggests that the International Monetary Fund could break the current agreement with Ukraine on the Stand-By program.

"The existing Stand-by Arrangement with the IMF is at risk of being discontinued and rollover risks are exacerbated by large debt service repayments falling due in 2012, including to the IMF" - reads in the WB.

According to the financial institution, complicated political reforms are indispensable condition for sustained progress in critical areas.

"Increasing energy tariffs for the population and utilities, the solution of structural problems in the gas sector will test the seriousness of the government, especially on the eve of parliamentary elections in 2012", - the World Bank reports.