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24-06-2009 17:04 IMF asking Ukraine to explain developments around Naftogaz
The International Monetary Fund (IMF) is asking Ukraine to justify a possible increase in the statutory capital of Ukraine's state gas company Naftogaz, Oleksandr Shlapak, the First Deputy Head of the Presidential Secretariat said.
“We've agreed with the IMF that we will consult to that effect. The IMF controls a monetary base and currency reserves. A decision on Naftogaz strongly affects on both indicators. The IMF insists that we explain logic of that decision,” the official stressed. O. Shlapak added that in case the statutory fund of the company is increased, though necessary to amend the state budget 2009 for that purpose, Ukraine violates those IMF requirements on macroeconomic figures that are made as a condition for another loan tranche. According to him, in addition to the increase in the statutory fund it is also necessary to make a range of other measures to stabilize the company's balance. As reported, the Cabinet of Ministers proposed increasing the statutory capital of Naftogaz to help the company compensate for the difference in gas prices for municipally owned heat supply companies. The sum of the increase in the company's statutory fund will be determined by a parliament decision, but the government said that the statutory fund should be increased by UAH 10-18 billion.
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