• image
  • image

Ukraine Markets Weekly (January 10, 2017)

 

Macro & politics update

  • Consumer prices increased by 0.9% m/m in December 2016. Year-to-date, consumer prices increased by 12.4%. Consumer prices grew by 13.9% y/y on average in twelve months of 2016./li>
  • Ukraine’s foreign reserves grew by 1.8% m/m in December of 2016, and amounted to USD 15.539 bn as of January 1, 2017. The country’s official reserves increased by 17% or USD 2.2 bn in 2016.
  • From January 4, 2017, the National Bank of Ukraine (NBU) lowered the cap on cash transactions involving individuals, including payments on contract between individuals requiring notarial certification, from the earlier daily ceiling of UAH 150 thousands to UAH 50 thousands (USD 1840 at current NBU rate). Individuals are allowed to carry out any transactions exceeding the UAH 50 thousands ceiling only by way of bank current or deposit account in national currency.
Read more: Ukraine Markets Weekly (January 10, 2017)

Fixed Income Weekly (January 04, 2017)

 

Macro & politics update

  • Ukraine’s current account deficit amounted to USD 3.1 bn in January-November, matched by a net inflow of USD 4.0 bn on the financial account balance. The balance of payment was positive at USD 987 mn in 11M2016.
  • Agricultural production increased by 2.9% y/y in 2016. Ukraine recorded a historically high grain yield of 4.4 tons/ha, bringing a gross grain harvest of 64 mn of tons. Ukraine’s foreign Agricultural trade volume amounted to USD 15.3 bn in ten months of 2016, increasing by 3.6% y/y.
  • On December, 29, 2016, the Ukrainian Prime Minister Volodymyr Groysman presented the medium-term strategy of the Government up to the year 2020. The government singled out economic growth, efficient governance, human capital development, judicial equity and fight against corruption, security and defense as its top priorities over the period.
  • On December 30, 2016, Naftogaz signed with Citi and Deutsche Bank a Euro-denominated revolving credit facility for gas purchase in the equivalent of USD 500 mn.
Read more: Fixed Income Weekly (January 04, 2017)

Fixed Income Weekly (December 19, 2016)

 

Macro & politics update

  • The National Bank of Ukraine as the lender of last resort introduces a new liquidity management instrument – Emergency liquidity assistance (ELA). Emergency liquidity assistance of the regulator under this facility is provided to banks, after they have exhausted all other available means of liquidity support, including shareholders’ bailout, as well as standard refinancing instruments.
  • S&P Global Ratings classifies Ukraine's banking sector in group '10' ('1' being the lowest risk, and '10' the highest). Ukraine’s National Bank expects the banking system to return to profits in 2017.
  • Ukraine's central bank extended for unlimited term the foreign exchange restrictions introduced in 2014 to stabilize the national currency against the looming economic and political crisis. The Central Bank extended the effect of the clauses on mandatory sales of proceeds from foreign operations together with the 120-day foreign trade settlement term by six months, up to June 15, 2017.
Read more: Fixed Income Weekly (December 19, 2016)

Fixed Income Weekly (December 12, 2016)

 

Macro & politics update

  • Consumer prices grew by 1.8% m/m (12.1% y/y) in November. Food price increase slowed to 1% m/m (3.4% y/y). Utilities’ prices increased by 5.3% m/m (47.2% y/y). The prices on transport services and items increased by 1.1% m/m (+10.5% y/y). Year-to-date, the consumer inflation accelerated to 11.4% ytd (14.1% y/y) in January-November, 2016. Food prices grew by 1.7% ytd (9.5% y/y), utilities by 47.2% ytd (33.9% y/y), transport services and goods by 10.6% ytd (6.1% y/y) in eleven months.
  • Ukraine’s foreign reserves contracted by 1.6% m/m in November, and amounted to USD 15.3 bn by December 1, 2016
  • On December 7, 2016, the Ukrainian Parliament adopted a bill providing for increase of the monthly minimal wage level in Ukraine from the current seize of UAH 1600 (nearly USD 61) to UAH 3,200 (USD 123) from January 1, 2017
Read more: Fixed Income Weekly (December 12, 2016)

Fixed Income Weekly (December 6, 2016)

 

Macro & politics update

  • Ukraine’s GDP grew by 1.2% y/y in January-October, 2016, according to estimates of the Ministry of Economic Development and Trade. The consolidated production index, calculated by the Ministry, demonstrated an accelerated growth of 3.2% y/y in ten months, up from an increase of 2.8% y/y in nine months, thanks to the agricultural sector (2.8% y/y), construction (13.7% y/y), and domestic trade (4.6% y/y)
  • Ukraine’s current account deficit fell by 73.7% m/m (-45.7% y/y) in October, 2016, and amounted to USD 234 mn. In ten months of the current year, however, the current account deficit has increased to USD 2.5 bn in January-October 2016. The financial account surplus declined by 77.1% m/m (-52.7% y/y) to USD 311 mn in October. The cumulative ten-month financial account balance was positive at USD 3.5 bn. The overall development left the balance of payment with a surplus of USD 91 mn (-81% m/m; -60% y/y) in October, while the ten-month cumulated payment surplus stood at USD 1 bn.
Read more: Fixed Income Weekly (December 6, 2016)