The Ukrainian Finance Ministry is satisfied with progress in Naftogaz Ukrainy's negotiations with creditors.
“I am satisfied that the negotiations are taking place,” acting Finance Minister Ihor Umansky told journalists on Wednesday. Naftogaz is currently preparing proposals for the Finance Ministry. They will be examined and submitted to the government,” he said.
The Finance Ministry expects to see those proposals in the near future, he said.
“The Finance Ministry will hear the structure [Naftogaz] proposes. As soon as we receive those proposals, we will make the appropriate decisions,” he said.
Naftogaz previously said that negotiations on restructuring external debt totaling $1.6 billion had already begun.
That debt includes $500 million in eurobonds maturing on September 30, 2009, debts of $220 million to Depha Bank, $550 million to Credit Suisse International, and $395.2 million to Deutsche Bank, which mature in the 2009-2012 period. Including interest the debt totals about $1.78 billion, including about $650 million payable this year and $570 million next year.
The holders of Naftogaz eurobonds totaling about $100 million or about 20% of the total amount of the issue, oppose a potential restructuring of the debt.
That group believes it may soon be joined by other bondholders. That opposition will acquire a veto over restructuring negotiations if their numbers rise to 25% of the total issue.
Naftogaz First Deputy CEO Ihor Didenko dismissed the initiators of the group, saying they are “speculators passing themselves off as consolidators of our debt.”
