The number of Green Card international insurance contracts signed by the member companies of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) increased by 45.6% in January-July 2019 compared with January-July 2018, to 618,969.
According to the MTIBU’s website, the amount of accrued insurance premiums for this period rose by 35.8% compared to the same period last year, to UAH 1.038 billion.
At the same time, the amount of compensation paid on claims grew by 22.41%, to EUR8.440 million, while the number of claims paid was up by 3.04%, to 3,047.
The MTIBU is the only association of insurers that carry out compulsory insurance of vehicle owners’ civil liability for damage caused to third parties. Its members are 51 insurance companies, including ten full bureau members having the right to sign Green Card agreements.
Fitch Ratings has upgraded Ukraine’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) to ‘B’ from ‘B-‘, the outlooks are positive, according to a report on the rating agency’s website.
“Ukraine has demonstrated timely access to fiscal and external financing, improving macroeconomic stability and declining public indebtedness, while a shortened electoral period has reduced domestic political uncertainty. Expected macroeconomic policy continuity, the new government’s strong stated commitment to structural reforms and engagement with IFIs mean that Fitch expects further improvements in creditworthiness,” the report says.
“President Volodymyr Zelensky’s strong popular support and his party’s control of government and parliament provide the government with a uniquely strong position to move ahead with its reform-minded policy agenda. After a commanding victory in the second round of presidential elections, the president’s party Servant of the People (SOP) obtained control of the Verkhovna Rada (256 out of 450 seats) in snap parliamentary elections (originally scheduled for end October). The recently formed government under Prime Minister Oleksiy Honcharuk includes technocratic, pro-western and reform-minded ministers. Key economic policy makers such as Minister of Finance Oksana Markarova remain in their positions, supporting the continuity of policies underpinning reduced macroeconomic imbalances and improved stability,” Fitch said.
“The new prime minister intends to negotiate a new and longer program with the IMF, possibly an Extended Fund Facility (EFF), in the near term. The high likelihood of continued IMF engagement will facilitate access to official and market financing to meet large sovereign debt repayments in 2020-2021, and serve as an anchor for policies and reforms that could potentially lift growth prospects,” the agency experts stated.
“Prudent fiscal management, stable growth, declining interest rates and moderate exchange rate depreciation pressure will support continued government debt reduction. We expect government debt to decline to 47.9% of GDP (55.8% including guarantees) by end-2019, down almost 20 p.p. from the peak of 69.2% (80.9% including guarantees) in 2016 and below the current 57.5% ‘B’ median, and reach 44.4% by 2021. Government debt dynamics are highly exposed to currency risk as 67% is foreign currency denominated, but greater non-resident participation in the local bond market will help increase the share of local currency debt and extend maturities,” according to the document
“The long-awaited increase in Ukraine’s credit rating was made possible thanks to macroeconomic stabilization, a decrease in government debt and a reduction in political risks. This means that confidence in Ukraine is growing, and the risks associated with our creditworthiness are decreasing. And most importantly, the cost of borrowing will decrease,” Finance Minister of Ukraine Oksana Markarova said.
Ukraine since the beginning of the new 2019/2020 marketing year (MY, July-June) and as of September 6, 2019 had exported 9.792 million tonnes of grain and legumes, which is 1.6 times more than on the same date of the previous MY.
According to the Ministry of Agrarian Policy and Food, farmers also exported 5.63 million tonnes of wheat, 1.86 million tonnes of corn, 2.28 million tonnes of barley. As of September 6 this year, 52,600 tonnes of flour had been also exported.
As reported, with reference to the ministry, in the 2018/2019 marketing year, Ukraine exported a record 50.4 million tonnes of grain, legumes and flour, which is 23% more than in the previous MY.
The U.S. Department of Agriculture (USDA) in August raised its forecast for grain exports by 2.65 million tonnes compared with the July forecast, to 54.04 million tonnes.
Head of the parliamentary committee for finances, tax and customs policies Danylo Hetmantsev (from the Servant of the People parliamentary faction) has proposed to introduce a new type of issue-grade securities – bank certificates.
Bill No. 1112 on amending certain legislative acts regarding financial tools of banks was registered in the Verkhovna Rada on August 29.
The bill provides for two types of bank certificates – interest and discount.
Issue of bank certificates can be single and serial.
According to an explanatory note to the bill, a bank certificate combines the properties of a bank deposit and security. It has a convenient technological mechanism for issuing and servicing.
Unlike deposit certificates, a bank certificate will exist in a book-entry form and, therefore, have convenient mechanisms for accounting and circulation in the secondary market for its holder.
Average price of one square meter on the primary housing market in Kyiv by the end of 2019 could grow by 9% compared with the previous year, to $1,350, reaching the pre-crisis level of 2014. “Starting from the autumn, in the event of political stabilization, sales are expected to increase, and by the end of the year, prices will rise to the pre-crisis level of 2014,” Analyst at City One Development, a full-cycle development company, Olena Shyrin told Interfax-Ukraine.
According to City One Development, the growth of prices in the market in the first half of 2019 was facilitated by the stabilization and strengthening of the hryvnia exchange rate.
So, the average market price in the first half of the year was $1,296 per sq. m.
According to the company’s estimates, during the second quarter of 2019, sales began in nine new housing complexes with a total announced number of apartments of about 3,500. At the same time, six of them are of the business class, two are comfort and one of the economy class.
“In general, despite the elections and political instability, in the first half of 2019, the primary residential real estate market was expanded with 25 new residential complexes (taking into account the launch of 16 new residential complexes in the first quarter of 2019). Of these, seven are in the Pechersky district, presented in the business class,” City One Development said.
JSC Ukrposhta has introduced a new additional service for delivering small packages, “Postal Express to the United States,” the company’s press service has said.
According to the report, the service provides priority processing of departures at Ukrposhta, customs clearance and shipment of departures for direct flights to New York. Its launch took place in August and already tens of thousands of items were delivered in a new way.
The company said that during the testing of the service, for 90% of shipments the processing time from the moment of departure from any automated branch of Ukrposhta to the first scan in the USPS national mail system was from three to five days. Moreover, the full delivery time until delivery in any U.S. state, taking into account customs clearance in the two countries, for 80% of small packages ranged from four to ten days.
At the same time, the average delivery time for packages by the basic service is currently 14 days.
