Financial Times FT.com

Kiev raises debt fears with gas bond move

By Roman Olearchyk in Kiev

Published: August 5 2009 19:34 | Last updated: August 5 2009 19:34

Ukraine threatened on Wednesday to forcibly restructure a foreign bond issued by Naftogaz, the state gas company, reviving investors’ fears about the ability of crisis-hit countries in eastern Europe to repay debt.

Ihor Umansky, Ukrainian finance minister, said Kiev had this week serviced some of its external debt after receiving $3.3bn (€4.7bn) in fresh aid from the International Monetary Fund and a pledge for a $1.7bn loan package brokered by the European Union last week.

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