Finance

A London court rejected the $350 mln claim against Petro Poroshenko and Valeria Gontareva in the PrivatBank case. The London court issued their decision with denied the claim that Igor Surkis and a group of companies owned by his family regarding the nationalization of PrivatBank. The loss of $ 350 mln deposited by the Surkis companies during the nationalization of PrivatBank fell under the bail-in procedure since the Surkis Brothers were recognized as related to PrivatBank.

In 2021, 90% of business representatives gave an upbeat forecast on their companies’ financial health at the end of the year: 62% will achieve planned financial results, 28% will achieve more than was planned, and only 10% of companies will fail to achieve planned financial results according to a survey of the AmCham jointly with Citi Ukraine.

The volume of short-term external debt with a residual maturity (payments in the next 12 months) for the first half of 2021 decreased by 2.5% to $ 47.3 billion. According to the report, Ukraine’s gross external debt in the first half of the year decreased by 0.3% to $ 125.3 billion. In terms of GDP, it decreased to 75.9% from 81.2% at the beginning of the year.

($1.7 bln) in January-August 2021, which is UAH 13 bln ($0.48 bln) more than in the same period in 2020. This announcement which was posted by the NBU on its Telegram channel concluded that the 40% increase in profitability illustrates the healthy returns in the banking sector.

The draft state budget for 2022 provides for 3 bln UAH ($111 mln) for the program, as reported by the Ministry of Finance on Facebook.

mln ($8.8 mln). In the announcement, the fund said that 12 companies took part in the auction, and the starting price of the asset increased more than three-fold from 65 million to 234 million 900 thousand UAH.

The government borrowing plan for 2022, submitted by the government to the Verkhovna Rada along with the draft state budget.  It involves the issue of Eurobonds with a maturity of 5-15 years for the equivalent of $1.5 billion, or UAH 42.9 billion. The weighted average interest rate on them is 7.5%.

One of the main drivers of such inflation dynamics is the sustained high price level in the global commodity markets. Inflation in Ukraine’s MTPs also remains high, although in August there were signs of a slowdown. Raising the key policy rate to 8.5% in 2021 and rolling back the emergency monetary measures will be sufficient to ease inflationary pressures and return inflation to 5% in 2022 announced the NBU Monetary Policy Committee.

Local and cross-border investors will be able to participate in online auctions for the privatization of the three ports in the sea harbors of the Odessa region. The privatization was announced by the head of the regional branch of the State Property Fund of Ukraine (SPFU).

PrJSC Mariupol-based Illich Iron and Steel Works (Donetsk region) will pay UAH 11.004 bln for the payment of dividends from retained earnings, Azovstal – UAH 7.718 billion, PrJSC Dniprovsky Coke and Chemical Plant (Kamianske, Dnipropetrovsk region– UAH 1.774 bln, PrJSC Avdiyivka Coke and Chemical Plant UAH 2.365 bln , and PrJSC Zaporizhkoks – UAH 3.867 bln.

UkraineInvest has already received applications for almost $ 2 billion of investment, announced its CEO, Sergiy Tsivkach. In the first half of the year, foreign direct investments increased by $ 2.7 billion compared to the same period last year. This included investment in 9 projects in the Agro-processing sector valued at $534 million, 9 projects in the processing industry and production valued at $516 million, 5 projects in the logistics sector valued at $ 531 million, and an investment of

In 2019, Ukrzaliznytsia’s debts to PJSC Prominvestbank valued at $153.25 million were sold to VR Global Partners L.P. UZ stating that they are ready to pay only confirmed debt obligations and are not ready to allow double penalties (reports). “Ukrzaliznytsia also did not agree with the interest to be paid on the debt from 10 to 11%, however, 3% interest rate would be more accurate.

 The State Statistics Service has published new data on exports of Ukrainian goods. In January-July 2021 they grew by 33.4%. Exports to the European Union increased by almost 50%. Significant growth is taking place in most major sectors of the economy. For example, according to Prime Minister Denys Shmyhal, sales abroad from the machine-building industry increased by almost 30%.

Deputy Head of the President’s Office Yulia Svyrydenko says: “We expect that a full-fledged economic recovery will take place during this and subsequent years. This year we forecast the growth [of GDP] at the level of 3.8%.” She noted a recovery in private consumption and external demand. The Ministry of Economy has confirmed its growth forecast for 2021 at 4.1%, while the National Bank expects the GDP growth at 3.8%.

reported ukranews.com. It is envisaged that in 2022 the subsistence minimum wage from January 1 will be UAH 2,393 ($89), from July 1 – UAH 2,508 ($93), and from December 1 – UAH 2,589 ($96).

 with a deficit of 3.5%, Reuters has reported. The gross domestic product (GDP) deficit is down from 5.5% in 2021.  Speaking during a televised government meeting, the Prime Minister, Denys Shmygal said: “The budget for 2022 is not only balanced and realistic but also the budget for modernizing the country, restoring the economy and investing in people, in their health, education, and development. The draft is based on a forecast of 3.8% economic growth next year compared to about 4%

 reported in 112international. The average monthly salary of a doctor will be $850, and nursing staff $550 per month.  The Minister of Finance, Marchenko said that there will now be a minimum monthly salary for doctors of $755, and $490 per month for other medical staff.”

Census, Action and IT: almost ₴ 8 billion digital expenditures; ₴ 124.1 billion for the development of road infrastructure in Ukraine; ₴ 8 billion for agriculture; ₴ 7.5 billion provided for the development of the strategic industry; ₴ 158 billion for the Medical Guarantees Program; ₴ 193 billion for Medicine; and Expenditures on the security and defense sector are projected at 5.95% of GDP.

have been discussed by Kyrylo Shevchenko and the World Bank Vice President, Anna Bjerde. During the meetings they have identified areas in which the World Bank can support reforms to the Ukrainian economy. This includes the regulation of the non-bank financial sector, efforts to reduce the banking system’s NPLs, and the progress of corporate governance reform and state-owned banks privatization. The discussion concluded with the importance of the privatization of state-owned banks with the introduction of good corporate governance practices.

On September 3rd, 2021, the National Bank registered the first five collection companies. For the first time, the NBU has provided legislative regulation of the behavior of collection companies and financial institutions in the settlement of overdue debts on consumer loans. To be able to provide collection services, the institution must be registered with the NBU.

according to the Ministry of Economy. The GDP of Ukraine for seven months of 2021 increased by 2.1% against a decrease of 6.1% in 2020. In July 2021, almost all major economic activities, except wholesale trade, showed growth. The positive dynamics of the economy was stimulated by industry due to favorable conditions in foreign commodity markets. Agriculture has entered an active phase with high yields of almost all crops. At the same time, the costs of livestock producers increased significantly

The government wants to focus on this industry and significantly increase revenues. According to the results of 10 years, the percentage increased in the IT industry, to 4.9% in 2020 and to 5.6% in the first quarter of 2021. At the same time, in hryvnias, the volume of GDP in this sector grew more markedly from UAH 34.3 billion to UAH 187 billion. According to Volodymyr Zelensky’s forecasts, the revenues of the IT industry in Ukraine may increase from $

 The Prime Minister also accentuated that Ukraine had received a positive message from the European Union to obtain macro-financial support in the amount of €600 million. According to the Prime Minister, the European Commission is waiting for the IMF mission to be completed. The date of receiving the tranche from the EU has been extended. According to Denys Shmyhal, this tranche may be distributed this fall.

 reported the Odessa Journal.  Shanghai is developing a number of projects in Ukraine in the agro-industrial sector and foresees prospects for cooperation in energy, infrastructure, agriculture, according to the Deputy Director of Shanghai Municipal Commission of Commerce Zhu Yi. “We now have six direct investment projects of Shanghai in Ukraine worth $17 million, in the agriculture, forestry, livestock, and fisheries sectors. The total volume of contracts that Shanghai has concluded in Ukraine has been estimated to be $897 million, of

The IMF Representative in Ukraine, Vladyslav Rashkovan said. “The mission could start working in 10-12 days, and most likely the mission will be virtual,” he said speaking at the YES Brainstorming conference in Kyiv last Saturday.

Anna Bjerde is in Kyiv on her first official visit to Ukraine from September 12 to September 15, 2021. Ms. Bjerde will meet with the Prime Minister, Denys Shmyhal, and other members of the Ukrainian government. She will also visit a private farm to familiarize herself with the implementation of land reform supported by the World Bank programs.

KPMG is assisting the national mail provider with its search. Ukrposhta announced a tender for the selection of a bank appraiser in mid-May 2021. The CEO of Ukrposhta, Igor Smilyansky, told Forbes. “Right now, we are looking at several banks with the help of KPMG, and hope to conclude the transaction by the end of the first quarter of 2022.” The investment into banking is expected to cost Ukrposhta $200 million, which corresponds to the minimum level of capital of

The Minister of Digital Transformation of Ukraine, Mykhailo Fedorov, has presented an idea of launching a Fund of Funds in Ukraine for US investors. “The state will not only invest in startups but will also direct funds to the world’s best venture capital funds to invest in Ukrainian startups. This will allow the number of startups to grow, and allow large strategic investors to enter the Ukrainian market. So, we will create a better environment for the development of the

As of September 13, banks have concluded 811 loan agreements valued at UAH 689.62 million within the framework of the state program “Affordable Mortgage 7%”. According to the Ministry of Finance, Ukrainian banks have issued 23% of loans in the primary, and 77% in the secondary markets. The program involves 22 regions, and the most active regions in terms of loan applications last week were: Kyiv City (33.3%), Kyiv region (30.9%), Kharkiv (6.2%), Lviv (5.8%), Rivne (4.1). %) and other

 As expected, on 9 September the National Bank (NBU) raised the interest rate to 8.5%. The move is aimed at combating soaring inflation and reassuring International donors of the central bank’s independence. Consumer-price growth has exceeded 10% for the first time since 2018, reinforcing expectations of another increase in borrowing costs. At 10.2%, the inflation rate in Ukraine trails only Turkey in the region. The decision comes as IMF officials prepare to review Ukraine’s efforts toward unlocking a $5 billion

On September 8 the government approved the merger of the State Mortgage Institution with Ukrfinzhytlo, which ensures the functioning of the mortgage lending market in Ukraine and introduces financial and credit mechanisms for providing citizens with housing.

According to Prime Minister Denys Shmyhal: “After the completion of the merger [of the State Mortgage Institution and Ukrfinzhytlo], we are preparing a bond issue worth about UAH 20 billion so that mortgage programs are available to as many Ukrainians as possible.” The parliament is currently considering a bill that proposes the issuance of government domestic loan bonds for UAH 20 billion for the implementation of the Affordable Mortgage presidential program. Its adoption will in the short term provide about

The report issued this month says that “Ukraine’s economy fell back into recession in the second quarter of this year as the fallout from the pandemic and soaring inflation that caused the National Bank of Ukraine (NBU) to dramatically hike interest rates start to weigh on growth. GDP shrank by a seasonally adjusted 0.8% q/q in the second quarter after falling 1.2% q/q in the previous three months, preliminary data released by Ukrstat showed on August 16. However, on an

“Ukraine’s economy has been recovering from last year’s crisis with industrial production bouncing back strongly in April, up 13% y/y. However, the growth is going off the boil now with industrial production also falling back to a mere 1.1% y/y in June as the low base effects fade away. The fly in the ointment has been inflation which has come roaring back this year and broke above 10% for the first time in years in July to reach 10.2% after

It’s taking place in Vinnytsia on September 10 and will be organized jointly by the Government Investment Promotion Office UkraineInvest and Vinnytsia Regional State Administration. The event is an extension of the 8th International investment forum “Vinnytsia Region – Business in the Center of Ukraine”. Among the themes to be covered are the local investment potential, investment policy and regional development, and the development of Industrial parks.

The bill on virtual assets was adopted by the Verkhovna Rada at the second reading on September 8. It was supported by 276 MPs. Deputy Prime Minister, Minister of Digital Transformation Mykhailo Fedorov, notes that currently, the daily turnover of virtual assets in Ukraine is UAH 1 billion, but all this is in the shadows. Taxes have not been paid on any transactions with virtual assets. The new law will create favorable conditions allowing companies to register in Ukraine, and

Prime Minister Denys Shmyhal announced this on September 8. He said the draft will be balanced, realistic, and will contain clear priorities, including support and development of defense capabilities, healthcare, education, infrastructure, and social programs.

 Dragon Capital’s CEO, Tomas Fiala, says this is due to unexpectedly worse than expected preliminary GDP data for the second quarter of this year. Surprisingly, wholesale trade fell to 5.7% in the first half of the year from 3.0% in the first quarter. In mid-July, the investment company had already lowered the forecast for the growth of the Ukrainian economy this year from 5.3% to 4.6%. Next year’s estimate of real GDP growth remains unchanged at 4.3%.

Fiala named Russia as risk number one to the Ukrainian economy. The second, a possible deterioration in the commodity and financial markets. Third, a rollback in the reforms. He recalled that since 2014, all business associations have been convincing the Ukrainian government of the need to create a new non-corrupt and professional law enforcement agency instead of the tax police, the Economic Crime Department in the Ministry of Internal Affairs, and the “K” Department in the State Security Service. Instead,

In August 2021, 8 new companies entered the nonbank financial services market in Ukraine, while 13 left. The number of nonbank financial market participants decreased from 1,938 (as of July 31) to 1,933 (as of August 31). The number of banks decreased from 73 to 72. The non-bank financial market consisted of 153 risk insurance companies (160 before) and 17 life insurance companies, 286 pawnshops (287 before), 301 credit unions (303 before), 138 leasing companies (137 before), 977 financial companies

reaching UAH 57.5 billion as of September 1st. According to the Prime Minister, the state budget received UAH 28 billion more than budgeted during the first eight months of this year and UAH 106 billion more than during 2020. This was due to economic recovery, favorable external conditions, and more efficient work of the tax and customs services,” he said.

The National Bank of Ukraine (NBU) purchased $159 million on the interbank foreign exchange market last week, according to the NBU between August 30 and September 3, 2021. The regulator also sold $7 million over the reporting period. Since the start of 2021, the NBU sold $197 million and purchased $1.54 billion on the interbank foreign exchange market.

 On September 3, 2021, a quantitative tender was held for the refinancing of banks for a term of 84 days. The applications of three banks for a total sum of UAH 535.0 million at an interest rate of 9.00% per were met. The NBU is gradually phasing out anti-crisis measures to support banks: long-term refinancing and interest rate swaps. From July 1 the terms for long-term refinancing loans are be limited from five to three years. The volume of auctions

It’s now in 4th place in the rating of the global crypto-asset perception index in 2021, compiled by the US analytical company Chainalysis after Vietnam, India, and Pakistan.

Maksym Demianiuk, the Advisor to the Deputy Prime Minister and the Minister of Digital Transformation, added that  “the Ministry of Digital Transformation has set itself the task of providing regulation of this market,” noting, the lack of legal regulation as the main problem in this issue.

. The process was unlocked by the parliament in March 2021.  According to Deputy Head of the President’s Office, Kyrylo Tymoshenko, a four-fold increase in state budget revenues from privatization is expected in 2021 compared to 2020. “In 2018, the growth of revenues from privatization amounted to 1.2%, in 2019 – 3.1%, in 2020 it was 350%,” and this year it is planned to keep boosting them.

It intends to develop the electronic exchange of tax information with the IRS. This was announced following a meeting in Washington between  First Deputy Prime Minister, Economy Minister Oleksiy Liubchenko, and the IRS management, the Economy Ministry’s press service reported. “The importance of such an exchange is difficult to overestimate, because, for example, transfer pricing rates cover transactions worth almost $3.5 billion with 152 U.S. counterparties,” Liubchenko said. He also emphasized the need to exchange experience in the field of

adequate under the IMF criterion.  According to Deputy Governor of the National Bank of Ukraine Serhiy Nikolaychuk,  After the payment of more than $1.3 billion on Eurobonds on September 1, international reserves still exceed $30 billion. “The reserves can be considered adequate according to the IMF criterion,” he said at the 7th Ukrainian Financial Forum organized by ICU Investment Group in Kyiv. Nikolaychuk noted that the banking system of Ukraine is ready for lending, and neither the corporate sector nor

Oleh Ustenko, adviser to the president on economic issues, has told Dom TV that in fulfillment of its obligations, Ukraine is strengthening the independence of the National Bank and intensifying efforts to fight against corruption. Two new initiatives in this regard are to be considered by the parliament. According to J. P. Morgan, the next tranche from the IMF in the amount of $ 3 billion could be provided to Ukraine by the end of 2021.

Presidential economic advisor Ustenko also affirmed that Kyiv expects this support by September 14.