In an exclusive interview, director Sergejus Fedotovas reveals he is confident that Hearts is well positioned to manage the economic storm affecting Scottish football.

Sergejus spoke exclusively to Hearts News at Tynecastle and emphasised that Hearts is cushioned from the external financial pressures faced by other clubs.

This interview was first sent out to supporters via email, earlier this afternoon.

The debt carried by many football clubs is headline news at present, how exposed is Hearts to its existing debt?

The key fact, that sets Hearts apart from many other clubs, is that our debt is in the form of funding from our own parent company Ukio Banko Investicine Grupe (UBIG). We are not exposed to the external debt levels of other highly geared businesses.

Our positive funding arrangement means that it is our own Group that finances Hearts and not external financial institutions. We therefore do not consider this as "real" debt - in simple terms, we owe the money to ourselves as Hearts is owned by UBIG. This positive funding arrangement provides security of funding for the club and, in turn, this allows us to both weather the current challenging economic conditions but, most importantly, develop the business for the future.

The club does not pay the interest on the debt, just accumulates it - it shows that the owners are not profiting from the club.

While UBIG is a well resourced and financed multi-national organisation our positive funding arrangement does not mean that we are ambivalent in our management of Hearts. The onus is to ensure Hearts is run efficiently and is maximising its revenue generating opportunities.

UBIG offered a 'funding-for-equity' deal previously to reduce the club's debt by £12m in July 2007, do you think this would be an option again in the future?

Yes. At present we are considering and assessing plans for a further funding-for-equity deal which is realistic.

Is UBIG still fully committed to Hearts?

It is 'fact' that UBIG is 100% behind the club and its future development plans. UBIG has been an essential backer and partner of Hearts since the outright purchase of the club in February 2005. In the five years we have been at the club and we have achieved some success and at some times were deprived of success, but at all times we remain committed to the club. If you look at the board of the club, closest representatives of the owner are there and it shows the level of importance and commitment.

Since we came in the financial situation has been solid. All payments are ok at the club. The players are paid for five years since we have bought the club and the bonuses are paid when the team deserves a bonus.

UBIG provides funding for the club along with a range of other resources such as business expertise, connections to other football organisations and business contacts. This is evidenced in our ongoing planning for the Tynecastle stadium redevelopment, our bank development and other projects and business opportunities in Edinburgh.

Hearts enjoys an excellent relationship with UBIG and as long as Hearts maintains a focus on operational efficiencies and progressing the club in business development terms then we can look forward to many more years of support from the organisation.

And what about Ukio Bankas, the club's bankers, how do you view that relationship in light of the pressures being faced by financial institutions?

Ukio Bankas maintains ambitious development plans and the bank remains profitable unlike most others in UK and elsewhere in Europe. Ukio Bankas is a very supportive partner of the club. For example, our banking relationship ensures that Hearts receives first class quality and timely service.

Does the economic climate prohibit Hearts from securing further investment funding for projects such as the stadium redevelopment?

We are working to deliver an investment solution that will allow us to generate a profit for the club from an enhanced stadium which provides the best spectator experience.

We continue to envisage a redeveloped stadium at Tynecastle which provides great benefits to the club and its supporters. External funding is not a necessary element of our future strategy but we remain open minded about partnership opportunities that will help develop the club. We are currently assessing certain investment options and we believe that we are making good progress in this area.

What can we expect from the forthcoming Annual Results?

We will be issuing our annual results in the early part of next year and they are in line with expectations. We expect to demonstrate significant savings in key operational areas.