KIEV, Ukraine, Sept. 25 (UPI) -- Ukrainian Fuel and Energy Minister Yuriy Prodan says the state-owned oil and gas company Naftohaz Ukrayiny will not default on its Eurobond debt.
The Interfax-Ukraine news agency Friday quotes Prodan as telling a press conference in the capital Kiev that the country's Eurobond debt will shortly be restructured, saying, "Naftohaz came to the stock exchange with proposals on restructuring. Nearly all talks with creditors and with the largest holders of Eurobonds have been held. These holders got very serious and well-founded proposals. We expect that within the 20 days, during which time the proposals will be considered, all debt obligations of Naftohaz will be restructured. The situation is quiet. There will be no default."
Naftohaz currently has $500 million in Eurobonds due to be redeemed on Sept. 30 for new securities guaranteed by the state and due to mature in 2014.
The discussions are being watched closely in Europe, as the last several years have seen disputes between Naftohaz and Russian supplier Gazprom lead to partial shutoffs of Russian natural gas exports, which transit Ukraine bound for Eastern Europe, that have caused significant disruptions.
