OREANDA-NEWS. November 17, 2010. Naftogaz, the state gas monopoly, intends to borrow UAH 650mn from Forum Bank, the company announced Nov 15. The Bank is to provide a multicurrency revolving line of credit for 2010-2011 to settle Naftogaz accounts with Gazprom.

Millennium Capital: this news is MIXED for FORM UK. The line of credit will expand the current loan book of the bank by some 4.3%, soaking up spare liquidity and generating interest income for Forum. On the other hand, the creditworthiness of the borrower, drowning in debts traditionally backed up by the state, evokes concerns.