Business news from Ukraine

NATIONAL BANK PERMITS SWISS COMPANY TO BUY 51% IN BANK LVIV

The National Bank of Ukraine (NBU) has approved the acquisition of 51% of shares in public joint-stock company Bank Lviv by Switzerland’s responsAbility Participations AG, the asset management company. The NBU said on its website that the decision was made on June 23.
Bank Lviv earlier reported that the package of documents to approve the acquisition by the new strategic investor was submitted on September 12, 2017.
Bank Lviv was registered in 1991. Its ultimate beneficiary holding over 99.9% of shares was citizen of Iceland Margeir Petursson.
The bank ranked 44th among 84 operating banks in terms of assets as of January 1, 2018 (UAH 1.938 billion), according to the NBU.
According to a posting on the website of responsAbility Participations, 60% of its shares belong to Swiss financial institutions, including Baumann&Cie, Raiffeisen Switzerland, Swiss Re Foundation, Vontobel Beteiligungen, 21% – to private investors and 19% – to managers and employees.
The core business of responsAbility Participations is investment in developing markets.

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UKRAINE AND SERBIA IN TALKS OF LAUNCHING BELGRADE-KYIV FLIGHT

Ukraine and Serbia are holding talks to launch the Belgrade-Kyiv regular flight, Serbian President Aleksandar Vucic has said.
“We have started the negotiations… on the launch of a new regular flight between Belgrade and Kyiv,” Vucic said after the talks with Ukrainian President Petro Poroshenko in Belgrade on Tuesday.
He said that the launch of the flight would help to establish business and cultural ties between Ukraine and Serbia.
Vucic said that last year over 10,000 tourists from Ukraine visited Serbia.
“We believe that this tourist flow would grow more,” he said.
The Serbian president showed the interest that citizens of Serbia travel to Ukraine.

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UKRAINE’S HOUSING STOCK TOTALS 984.8 MLN SQUARE METERS OF SPACE – STATISTICS

Ukraine’s housing stock as of January 1, 2018 totaled 984.8 million square meters of space, which is 0.7% or 6.9 million square meters more than as of January 1, 2017.
The State Statistics Service has reported that the figures are presented, not taking into account the temporarily occupied territory of Crimea and Sevastopol and certain areas of Donetsk and Luhansk regions.
According to the report, 60.9% or 599.4 million square meters of housing space was located in urban areas.
The share of apartment-type houses was 98.4% of the entire housing stock, while the share of shared apartment-style housing space and housing space in nonresidential buildings was 1.6%.
According to the report, as of January 1, 2018, there were 17 million apartments in Ukraine, and the share of one-room apartments was 19.5%, two-room apartments – 36.6%, three-room apartments – 32.6% and four-room and larger apartments – 11.3%.

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PARLIAMENT PASSES BILL ON RESUMPTION OF LENDING

Ukraine’s Verkhovna Rada on Tuesday passed at second reading bill No. 6027-d amending some Ukrainian laws regarding resumption of lending. According to a posting on the website of the National Bank of Ukraine (NBU), the adoption of the document would ensure the solving of existing problems creating systemic obstacles for resumption of lending to the economy and bringing additional risks for operations of national and foreign investors.
“In the conditions of the enhanced protection of rights of creditors banks would be able to announce more balanced requirements to borrowers. This, of course, would help to spread lending, cut the cost of borrowed funds and ease the access to bank products for economic entities and natural persons,” the NBU said.
Verkhovna Rada in the middle of May 2018 passed at repeated first reading bill No. 6027-d for resumption of lending. During the finalization of the bill, the requirement was clarified, in particular, regarding the banks’ access to the public register of civil status assets. This access is proposed to be provided with the written consent of the individual concerned.
In addition, the creditor’s deadline for submission of claims to heirs from the date of receipt of a certificate of inheritance was reduced from 12 to 6 months. In this case, this rule excludes the situation when the bank did not know and could not know that the moment the inheritance becomes available.

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MORE THAN 3.2 MLN CITIZENS OF UKRAINE WORK ABROAD – DATA

Minister of Social Policy Andriy Reva has said that more than 3.2 million Ukrainian citizens are employed abroad on a permanent basis. “More than 3.2 million Ukrainian citizens work abroad on a regular basis,” Reva said at the launch of the project to improve the management of the labor market dubbed “Inclusive labor market for jobs in Ukraine” in Kyiv. He also noted that labor migration is currently seasonal. “According to our estimates, up to nine million Ukrainian citizens take part in this process,” the minister added.
According to Reva, at the moment one of the actual problems of the labor market is the unemployment rate among young people and the inability to find a large number of internally displaced persons. In addition, a large shadow employment and a disproportion between the supply and demand for skilled labor are the current problems.

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