: :inin Kyiv (EET)

Ukraine`s 3 biggest state companies owe US$2.45 bln to banks

Ukraine`s three biggest state-owned companies – NJSC Naftogaz of Ukraine, JSC Ukrzaliznytsia and NAEC Energoatom – account for 74%, or UAH 64 billion ($2.45 billion), of the total debt all the state-run companies owe to Ukrainian banks, according to the National Bank of Ukraine (NBU).

The total debt is estimated at UAH 87 billion, or $3.32 billion, the NBU said in a financial sustainability report posted on its official website.

Two of the three companies were unable to properly service their debts both before foreign and domestic creditors, mainly state banks, at the beginning of the crisis, the report said.

In the past two years, the regulator says, state-owned companies, mainly large-scale ones, have considerably boosted revenue and improved their financial position. Therefore they can service and repay their debts on time, which opens prospects for raising funds on foreign markets in the medium-term outlook.

”The three largest state companies` current financial indicators allow them to service debts as required, and in future, they are likely to repay them all,” the NBU forecasts.

”There is no need to give them state support, as risks of a quasi-fiscal deficit due to the necessity for financing the state-owned companies are minimum,” the NBU said.

At the same time, the regulator recommends that the state banks should give up their practice to issue loans to state companies and should bring their credit policy in line with the guidelines and provisions of the Strategy for the Development of State Banks.

As UNIAN reported, Ukraine`s government plans to funnel at least 1% of GDP into an increase in charter capital of state-owned Oschadbank and Ukreximbank and into the financial support of the Deposit Guarantee Fund in 2017. 


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