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10:23
NAFTOGAZ VOWS TO MEET ALL ITS OBLIGATIONS ON TIME, SAYS FINANCE MINISTRY

Kyiv, July 29 (Interfax-Ukraine) – The appropriateness of restructuring NJSC Naftogaz Ukrainy's foreign debt is being considered, Deputy Finance Minister Andriy Kravets told Interfax-Ukraine.

"It's too early to speak about any restructuring – the issue is under consideration," he said.

As he put it, Acting Finance Minister Ihor Umansky earlier spoke about the possibility of restructuring the company's foreign debt after agreement is reached with the government.

He stressed that the government will be closely involved in the issues related to the possible restructuring of Naftogaz's foreign debt.

"I'd like to stress that NJSC Naftogaz Ukrainy is a company that forms the bulk of national budget flows as a taxpayer. And it really makes a very huge contribution to the budget's revenues," he said.

He said both the ministry and the government are closely scrutinizing the situation around Naftogaz. The government will always support the company under any circumstances, he added.

The International Monetary Fund has just decided on the immediate release of the third tranche worth $3.3 billion and the money is to arrive in Ukraine soon, Kravets said.

In keeping with the IMF's decision, the entire sum of the money will be channeled into Ukraine's budget to finance the fiscal deficit.

"Among other things, the IMF funds will be used to service and repay Ukraine's foreign liabilities," he said.

"All the liabilities [of Ukraine] will be serviced on time," he said.

Block of Yulia Tymoshenko MP Oleh Liashko, the deputy head of the Verkhovna Rada's budget committee, in turn said that the government is doing its best to ensure Naftogaz's stable work.

"One may be sure today that Naftogaz Ukrainy will meet all its obligations to creditors," he said.

He said the government, in particular, had decided to raise Naftogaz's charter capital by UAH 18 billion. Moreover, there is enough gas in Ukraine's underground storage facilities for the country to survive the winter period.

"No matter how strongly our opponents wish it to be otherwise, one should be confident that while Yulia Tymoshenko leads the government, Naftogaz Ukrainy will meet all its commitments to creditors on time," he said.

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