Ukraine says Naftogaz yet to set debt proposals

KIEV, Sept 9 (Reuters) - Ukraine's government is still waiting for state energy firm Naftogaz to come up with proposals for restructuring its foreign debt including a Eurobond due in just three weeks, the acting finance minister said on Wednesday.

The government has to approve Naftogaz's proposals before they can be put to bondholders because the company is state-owned. A forced restructuring or default would bear heavily on sentiment on Ukraine as a whole and all its bonds.

"Naftogaz is at the moment preparing its proposals to the finance ministry. These will be studied and then included in the government agenda," Acting Finance Minister Ihor Umansky told journalists.

"The finance ministry will listen to the restructure that (Naftogaz) will propose. As soon as the proposals are given to us, we will take the appropriate decision."

Naftogaz must repay the $500 million Eurobond by Sept. 30 or win agreement on restructuring. One group of Russian-based investors is trying to gain support of 25 percent of bondholders by volume to reject any restructuring terms. The July announcement by the government that it wanted to restructure the debt jolted foreign investors who see the debt as quasi-sovereign, thought the government had enough funds to repay it after an IMF loan and are worried about a default.

The company, often at the centre of energy rows with Russia, has been brought to its knees in recent years as it buys increasingly expensive gas from Gazprom and sells it on at still subsidised, often cheaper, prices domestically.

It said last week it wants to restructure $1.6 billion worth of foreign debts and had hired Credit Suisse as an adviser. Umansky has said before that an extension of payment deadlines could be one restructuring option. (Writing by Sabina Zawadzki; editing by Stephen Nisbet)