KIEV, July 29 – A cabinet instruction to the Finance Ministry and Naftogaz Ukrayiny to take measures on restructuring the state holding's debt on foreign loans and cut credit servicing costs via refinancing has affected Naftogaz Ukrayiny's $500 million issue of eurobonds which due September 2009.

An analyst from Kiev-based Sokrat Investment Company, Mykhailo Salnykov, said that over the past several days Naftogaz's eurobonds fell by 10 notches, to 82/87 notches, which led to a rise in yield from 60% to 137.96% per annum.