The Cabinet of Ministers of Ukraine has approved the extension of two loans issued by Ukreximbank to national joint-stock company Naftogaz Ukrainy in July-October 2008 and the improvement of their conditions.

The decision is outlined in government resolution No. 745-r dated October 18, 2017.

The government's press service reported that the changes envisage the reduction of the credit rate and the collateral coefficient.

"In addition, the resolution approved natural gas as collateral for Naftogaz Ukrainy's credit agreements," the press service said.

The adoption of the resolution would create conditions for refinancing of a debt to Gazprom by Naftogaz (under a loan issued in 2012).

As reported, in April 2017, Naftogaz and Ukreximbank reached an agreement to cut the interest for the loan agreements which expired on April 22, 2017 to 9.9% from 10.5% per annum.

Naftogaz Ukrainy unites oil and gas production assets in Ukraine, and is the country's gas transit, underground gas storage, and oil pipeline transportation monopoly.

Ukreximbank was founded in 1992. Its sole owner is the state.

The bank ranked third among 100 banks operating in the country as of October 1, 2017 in terms of assets (UAH 153.364 billion), according to the National Bank of Ukraine.