Bankers name the obstacles to attracting foreign investment to Ukraine. The top manager of Ukrsibbank, Dmytro Tsapenko, said: “A new restraining factor that appeared after the war began is currency restrictions, for example, restrictions on the payment of dividends ... #CurrencyRestrictions #financeUkraine #InvestmentsinUkraine #Ukrsibbank
US lawmakers will not vote on aid for Ukraine this year. The US Senate will not vote on an additional aid package for Ukraine, which will also require measures to strengthen US border security, until early next year, even as negotiators from both parties co... #ChuckSchumer #MitchMcConnell #USaidforUkraine #USsenate
Ukraine announced a $4B reduction in external financing needs for 2024. The government of Ukraine reduced the amount from $41B to $37.3B, Minister of Finance Serhii Marchenko said during a meeting of the financial leaders from the G7 countries, EU leadership, the IMF, and... #financialaidforUkraine #SerhiyMarchenko #UkraineBudget2024 #Zelenskyy
The US offers to transfer frozen Russian assets to Ukraine “in advance,” as part of reparations. According to the FT, although Washington has not publicly supported confiscating frozen assets, politicians have agreed to it privately. It is assumed that the seized assets can be transferred to Ukra... #JPmorgan #ReparationsForUkraine #RussianAssets #RussianAssetsConfiscation
The EIB allocates almost €100M to Ukraine for recovery. The European Investment Bank has assisted the Ukrainian government with €99.6M to reconstruct about 200 facilities in 18 regions. The funds will be used for capital repairs, reconstruction, and constr... #EIB #InvestmentsinUkraine #SupportUkraine #UkraineReconstruction #UkraineRecovery
The EBRD increases its capital by €4B to continue investment in Ukraine. The heads of the EBRD approved a resolution to increase the bank’s capital by €4B, bringing it to €34B. It is noted that the additional capital will be used to ensure stable investments in Ukrai... #ebrd #EBRDinvestments #investments #InvestmentsinUkraine
The IMF is concerned about Ukraine’s delayed financial assistance. The head of the IMF, Kristalina Georgieva, believes the West should provide financial aid to Ukraine as soon as possible. In her opinion, Ukraine can cope with the likely short-term financing deficit ... #DanyloHetmantsev #financialaidforUkraine #imf #KristalinaGeorgieva #UkraineBudget2024 #UkraineBudgetDeficit
The IMF insists on increasing bank lending to hasten Ukraine’s recovery. In Ukraine, the level of bank lending is low, which is a significant obstacle to the recovery of the country, according to former member of the NBU Council, Bohdan Danylyshyn. Danylyshyn states that, ... #BankLoans #BohdanDanylyshyn #financeUkraine #imf #LendingInUkraine #nbu
What kind of aid did Ukraine’s allies allocate last week? USAID is increasing the total funding of a grant program to support the innovative transformation and development of Ukrainian enterprises to $11M. About 75 grants will now be provided within the prog... #ebrd #financialaidforUkraine #GrantsforUkraine #KfW #UrsulavonderLeyen #USAID #worldbank
Banks have broken a mortgage record since the beginning of the war. Ukrainian banks issued 826 mortgage loans worth ₴1.3 billion in October, 1.6% more by the number of loans and 6.8% more in amount than in September, according to a monthly survey of banks. “The ... #eOselya #MortgageProgram #MortgagesUkraine #nbu
Following a slowdown in inflation, the NBU lowered the key rate for the fourth time in a row. The National Bank of Ukraine decided to reduce the discount rate from 16% to 15% per annum starting December 15, 2023. The NBU continued its pattern of lowering the discount rate, which began in July,... #AndriiPyshnyi #financeUkraine #InflationinUkraine #KeyPolicyRate #nbu
Where will the funds from the five-year, $7B support package from Norway go? Norwegian Prime Minister Jonas Gahr Støre announced four key allocations to Ukraine as part of a five-year support package worth NOK 75B ($7.1B). Funds will be distributed as follows: NOK 135M ($12.79... #JonasGahrStore #MilitaryAidforUkraine #NorwaySupportUkraine #SupportUkraine
The IMF supports a moratorium on Ukraine’s national debt payment until 2027. To that end, the restructuring will be carried out by the middle of 2024, said the head of the IMF mission in Ukraine, Gavin Gray. “An ambitious external commercial debt restructuring should be ... #DebtRestructuring #GavinGray #imf #UkraineBudget #ukrainedebt
Ukraine strives to solve its financing problems, but there are risks. Kyiv plans to cover its budget deficit primarily through more than $40B in external financing next year. At the same time, more than two-thirds of this amount has not yet been confirmed. Therefore, Uk... #CurrencyRestrictions #financeUkraine #nbu #UkraineBudget #UkraineBudgetDeficit
Ukraine will fully settle with the IMF under the 2018 stand-by program. Ukraine will fully repay the IMF under the 2018 stand-by program, which amounts to $166M at the current exchange rate, said Economist Oleksiy Blinov. According to him, the payment will be provided fro... #imf #nbu #OleksiyBlinov #ukrainedebt #UkraineLoans
The IMF has revised the forecast for Ukraine’s real GDP growth in 2023 to 4.5%. Ukraine’s macroeconomic indicators have been stronger than expected despite the ongoing war. This contributed to the upward revision of the IMF’s forecast for economic growth. The IMF revi... #GavinGray #GDPinUkraine #imf #UkraineEconomicForecast #UkraineEconomy
The EC approves a plan for the use of the Russian Federation’s frozen assets for Ukraine’s benefit. As a high-ranking EU official told journalists at a closed briefing, the European Commission will not publish the proposal but will submit it to the European Council for study and decision-making. The... #EuropeanCommission #RussianAssets #RussianAssetsConfiscation #UkraineRestoration
Fitch has confirmed Ukraine’s likely default and improved Ukraine’s GDP growth forecast to 5.1% this year. International rating agency, Fitch Ratings, has confirmed Ukraine’s long-term issuer default rating (EDR) in foreign currency at the CC level. Fitch expects the war to continue through 2024. At ... #defaultinukraine #FitchRatings #GDPinUkraine #UkraineEconomicForecast #UkraineEconomy #WarinUkraine
The Fitch agency is convinced that international financial support for Ukraine will not weaken in 2024. International agency Fitch Ratings expects that international aid to Ukraine for 2024 will be only slightly lower than the amount forecasted for 2023, $43B, despite the political risks associated with... #DragonCapital #EFFprogram #financialaidforUkraine #FitchRatings #UkraineBudget #UkraineFacility
Ukrainians are increasing their government bond investments. In 2022, the population’s share of the OVDP portfolio increased by ₴5.1B, and in 2023, it increased by ₴20.9B to ₴51.2B. The simplification of purchasing OVDP bonds facilitated this trend. Until recen... #BondsUkraine #DiiaAppUkraine #financeUkraine #OVDPselling #SenseBank #Ukrgasbank
Investment companies raise their 2024 economic forecasts for Ukraine. Based on 2023’s results, the ICU investment company predicts GDP growth between 5.8% and 5% in the coming year. It is also assumed that at the end of 2023 inflation will be 6.2%. Inflation is expected... #DragonCapital #GDPinUkraine #HryvniaForcast #InflationinUkraine #UkraineEconomy
The EU will consider a plan to use revenues from Russia’s frozen assets; Britain supports using these assets to help Ukraine. The EC must approve a legal proposal regarding the use of income from Russian assets frozen under sanctions in connection with the Russian Federation’s full-scale invasion. The decision is expected to... #DavidCameron #ReparationsForUkraine #RussianAssetsConfiscation #UkraineRecovery
A European donor funds control service will operate in Ukraine. The European Anti-Fraud Coordination Service (AFCOS) will be deployed to monitor the use of money from international donors, said the head of the State Audit Service, Alla Basalayeva. “We will m... #AFCOS #FinancialAidAudits #OLAF #UkraineFacility
Ukrainian banks increased earnings by 100% compared to the last pre-war year. Through ten months of the year, Ukrainian banks earned ₴122.7B, more than twice as much as in the corresponding period of 2021, when their collective profit was ₴58.35B. State-owned PrivatBank and Osc... #oschadbank #PrivatBank #PUMB #RaiffeisenBank #UkraineBanksProfits #UkrainianBanks
In Ukraine, non-transparent capital flows are twice as large as transparent ones. According to the Center for Economic Strategy, the share of domestic private constructive capital in Ukraine is about 22%, while corrosive capital is about 46%. Corrosive capital represents opaque cap... #ConstructiveCapital #CorrosiveCapital #financeUkraine #UkraineEconomy
Receiving €50B in aid from the EU will entail an increase in energy tariffs. As the EP writes, Ukraine, within the framework of the Ukraine Facility program, must gradually transition to economically justified energy tariffs by the fourth quarter of 2025. “It is necessar... #EnergyEfficient #EnergyTariffs #OleksandrButenko #SerhiyMakogon #UkraineFacility
The Ukrainian government discussed a special investment mechanism within the four-year EU program to reduce financing risks in priority sectors. On December 4, the Ministry of Economy of Ukraine consulted with an EU delegation regarding Component II of the Ukraine Facility program for 2024-2027. Component II creates a special investment mechan... #InvestmentsinUkraine #MilitaryRiskInsurance #UkraineFacility #VolodymyrKuzyo
Bankers share their forecast for deposit rates through the end of the year. By the end of the year, average rates on hryvnia deposits, depending on the term of the deposits, will remain at 14-14.5% per annum, predicts Globus Bank. It is noted that the average return on deposi... #DepositsInterestRate #financeUkraine #GlobusBank #nbu #UkraineDeposits
In November, assets of bankrupt banks were sold in Ukraine for ₴49.4M. Last month, Ukraine held 37 auctions to sell the assets of eight banks that were liquidated by the Deposit Guarantee Fund. The winning bids from successful auctions amounted to almost ₴49.4M ($1.35M).... #BankSich #DepositGuaranteeFund #PrivatizationUkraine #UkrainianBanks #Zlatobank
Revenues from the sale of bonds by the Ministry of Finance in November exceeded payments by more than ₴24B. For 11 months of the year, borrowing by the Ministry of Finance on the domestic debt market of ₴164.98B in equivalent exceeded payments on bonds of the domestic state loan (OVDP), particularly in Nove... #financeUkraine #nbu #OVDPselling #UkraineBond
The EU will present a plan for the use of frozen Russian assets, but a few issues still remain. On December 12, the EC plans to publish a plan to use the profits from more than €200B in frozen Russian Central Bank assets. Several issues still need to be resolved, however, and the EU proposal wil... #RussianAssets #RussianAssetsConfiscation #RussianCentralBank
Here is the financial assistance Ukraine received last week from its allies: The UK will contribute £20M to the Trust Fund for the Support of the Reconstruction and Economy of Ukraine (SURE), launched by MIGA. This contribution will reduce project risks and attract much-needed... #financialaidforUkraine #GrainfromUkraine #KfW #MIGA #SURE #worldbank
In November, the NBU reduced interventions by 27% and canceled all restrictions on the sale of cash currency. The net sale of dollars by the National Bank in November, the second month after the transition from a fixed exchange rate regime to managed flexibility, decreased from $3.34B in October to $2.45B in ... #CurrencyMarket #CurrencyRestrictions #CurrencySale #financeUkraine #nbu
The receipt of international aid lags behind the needs of the Ukrainian budget. The head of a specialized parliament committee, Danylo Hetmantsev reported that $37.43B was received from international partners to finance state budget expenditures this year, including $2B in Novemb... #DanyloHetmantsev #financialaidforUkraine #SupportUkraine #UkraineBudget #UkraineBudgetDeficit
Ukraine has a backup plan for a lack of financial assistance from the West. With uncertainty surrounding financial assistance from the US and the EU for the 2024 state budget, Ukraine is working on preparing a plan B, analysts say. They believe that with a reduction in extern... #financialaidforUkraine #SupportUkraine #UkraineBudget2024 #UkraineEconomy
Ukraine has fulfilled most IMF and EU structural beacons on time, but there are some delays. During the nine months of the IMF program, requirements have been met for 16 of the IMF’s 23 structural beacons and eight of the 20 conditions under the EU program. The country has neither fulfilled n... #EKrecommendation #imf #IMFStructuralBeacons #ReformsinUkraine
Several US states have profited from providing military support to Ukraine. The Biden administration has released data on which states have received the greatest financial benefit from providing military aid to Ukraine. This analysis was done to strengthen support from Republ... #SupportUkraine #USmilitaryAid #USweapons #WeaponsProduction
This fall, Ukrainian consumers’ optimism has fallen to its lowest level since last summer. The Ukrainian consumer sentiment index decreased by 2.8 points to 79.9 points in October. This is the lowest that the indicator has been since August 2022, when it was 75.3 points. At the same time, t... #BusinessActivityExpectations #ConsumerPrices #financeUkraine #UkraineEconomy
The EBRD will provide a €50M guarantee to a Ukrainian bank to support capital investments in technology and equipment modernization. Credit Agricole Ukraine signed a €50M risk sharing agreement with the EBRD as part of the Sustainability and Livelihoods program. The bank noted that this will allow it to support capital investments ... #CreditAgricole #ebrd #LoansforBusiness
The European Investment Bank has opened a regional office in Kyiv. The EIB announced the opening of a new regional EIB Eastern European representative office in Kyiv. The new regional office will provide enhanced support to Ukraine and Eastern Europe, cooperating and... #DenysShmyhal #EIB #EIBukraine
How will interest rates on loans and deposits change because of the increased bank income tax? The increase in the bank profit tax from 18% to 50% in 2023 and 25% in the following years may provoke an increase in loan rates by financial institutions and a decrease in deposit rates to ensure sta... #AndriyDubas #OleksandrPisaruk #TaxesinUkraine #UkraineBanksProfits #UkrainianBanks
War & Business: The Ukraine Business Network has been launched. Tucked away amid the sloping hills of Kyiv, a select group of business investors, representatives, and entrepreneurs gathered at the Parkoviy Congress Center to gain insight into investment prospects ... #AndrewPryma #DoingBusinessDuringWar #MarcMcNamee #ubn #UBNnetwork #UkraineBusinessDuringWar #UkraineBusinessNetwork #ukrainebusinessnews #War&Business #WarandBusiness #WarandUkraineBusiness
The World Bank supplies$400M for the Ukrainian budget, and the EBRD provides €200M for gas purchases. The state budget of Ukraine received a $400M loan under Great Britain’s guarantee through the World Bank Trust Fund. The funds are part of the fifth financing round of the PEACE in Ukraine project. Th... #ebrd #LoansForUkraine #Naftogaz #PeaceInUkraine #UkraineBudget #worldbank
Ukrainians have taken ₴29B worth in microloans and accumulated debt. In nine months of the current year, Ukrainians were issued six million microloans (MFI) worth ₴29.1B. This is more than in 2022 but 40% less than in the corresponding period in 2021, when citizens too... #financeUkraine #MicroCrediting #Microloan
A Ukrainian banks receives a $40M guarantee from the DFC for small and medium-sized business lending. Raiffeisen Bank received a $40M loan portfolio guarantee from the DFC. It allows the bank to provide loans of up to $50M to small and medium-sized businesses in Ukraine over the next eight years. The ... #DFC #LoansforBusiness #OleksandrPisaruk #RaiffeisenBankUkraine
What will happen if the EU refuses to increase 2024 support to Ukraine to €18B under the Ukraine Facility program: the parliament’s response. According to the Ukraine Facility plan, direct budget assistance from the total €50B over four years amounts to €39B. If that amount is divided into equal parts, you get €9.75B annually. This will no... #EUfinancialAid #RoksolanaPidlasa #UkraineBudget2024 #UkraineFacility
Ukrainians’ trust in banks is growing, and here is why. Over the past year, the volume of deposits in Ukrainian banks increased by more than 8.6%, reaching a record ₴1.14T. Ukrainians keep ₴733B of this amount in the national currency and ₴409B in foreign ... #BankDepositsinUkraine #financeUkraine #UkraineBankingSystem #UkrainianBanks
Ukraine has officially launched a mechanism to insure investments against war risks. The Ukrainian Parliament adopted Law No. 9015 on insurance of investments against war risks through the Export Credit Agency (ECA). The document amends the current law on financial mechanisms for stim... #ECA #InsuranceUkraine #InvestmentsinUkraine #MilitaryRiskInsurance
Processing enterprises paid the most taxes for 10 months of the year. According to Ukraine’s Tax Service, such enterprises paid 18% of the total tax to the Consolidated Budget of Ukraine. Also, significant tax contributions were provided by: Wholesale and retail t... #ProcessingPlantUkraine #TaxesUkraine #UkraineBudget
Bank profit tax increased to 50% in 2023 and 25% in subsequent years. The Ukrainian Parliament adopted a draft law on a temporary increase in the bank tax rate from an 18% to 50% tax on profits in 2023 and a permanent increase to 25% in the following years. The draft la... #financeUkraine #nbu #TaxesinUkraine #UkraineBanksProfits #UkrainianBanks
