Capital returns of banks in 2019 would considerably exceed 20%, which is the contingent standard for banking sectors of emerging countries, Director of the Financial Stability Department Vitaliy Vavryschuk said at the presentation of the financial stability report on Tuesday.
“In [the first] five months, the profit is already more than for entire 2018 [in January-May 2019, the net profit of banks was UAH 23.4 billion]. We are confident that capital returns of banks in 2019 would considerably exceed 20%, which is the contingent standard for banking sectors of emerging countries. We do not see any risks to profitability in subsequent quarters,” he said.
According to Vavryschuk, banks should use high profits to form the capital stock. In the coming years, capital requirements will be toughened substantially: it will be necessary to form capital conservation and systemic importance buffers (for systemically important banks), as well as to cover operational and market risks with capital (now only credit risk is covered with capital),” he said.
Ukrainian President Volodymyr Zelensky has invited foreign business to participate in the investment council under the Presidential Administration of Ukraine, which will meet twice a year. “We have a very large package of innovations. This is our State in Smartphone project, which will ensure a reduction in red tape pressure on people. It is the presidential administration that is restoring the investment council. We would like to hold it twice a year. And we invite you, because the more this council has foreign business, the more transparent it will be,” Zelensky said at a meeting with German businessmen, the press service of the presidential administration of Ukraine said on Tuesday.
The president of Ukraine noted the need to eliminate the pressure of law enforcement on business. Future plans include ensuring the independence of courts and law enforcement agencies, the creation of “electronic customs” and the fight against smuggling.
“The investment climate is a priority for us. I understand what foreign business is afraid of: our law enforcement agencies, which put pressure on businessmen, our courts, which do not protect it,” the head of the Ukrainian state said.
Representatives of the German business said they hoped for the development of cooperation, but this requires an improvement in the investment climate and the adaptation of European standards in Ukraine.
The event was attended by representatives of companies which total portfolio is EUR 220 billion.
“This is more than two GDPs of Ukraine, and these are about 450,000 jobs,” President of the German-Ukrainian Chamber of Commerce and Industry Andreas Lear said.
The president of Ukraine and business representatives also discussed the investment attractiveness of Ukraine.
Ukraine will start preparing a new program of cooperation with the International Monetary Fund (IMF) in July, Ukrainian President Volodymyr Zelensky has said.
The press service of the President of Ukraine reported on Tuesday that Zelensky during a meeting with large- and medium-sized businesses in Germany confirmed the cooperation of Ukraine with the IMF, the World Bank and the European Bank for Reconstruction and Development (EBRD).
“We are starting an agreement with the IMF, we will prepare a new program in July, there will be no default,” the president of Ukraine said.
He also said that, as president, he would not influence the courts or the banking system.
As reported, Deputy Head of the Presidential Administration Oleksiy Honcharuk said in an interview with NV.Business ezine that Ukraine is preparing for a possible launch of the new three-four-year program of cooperation with the IMF at the end of 2019.
On June 13, 2019, IMF Spokesperson Gerry Rice said in Washington that the IMF expects the completion of parliamentary elections in Ukraine to continue negotiations on further cooperation with the country. Rice recalled that in May the IMF mission worked in Kyiv, which had initial discussions with Zelensky.
The IMF Executive Board, following a meeting on December 19, 2018, approved a new program of cooperation with Ukraine under the Stand-By Arrangement. The amount of the 14-month program is equivalent to SDR 2.8 billion, or about $3.9 billion. Some SDR 1 billion (about $1.4 billion) was provided immediately, while the remaining funds will be provided based on the results of the program reviews in 2019.
The IMF mission worked in Ukraine in May, but left without recommendations on the provision of the new tranche. Head of the mission Ron van Rooden said that the IMF mission is ready to return to Kyiv after the parliamentary elections and the formation of a new government. The IMF team found that fiscal and monetary policies remain on track.
TAS Insurance Group in May 2019 collected UAH 133 million of insurance premiums, which is 32.3% more than in May last year, according to the insurer’s website.
OSAGO occupied the largest share of the insurer’s revenues in May with 38.69% and UAH 51.46 million of premiums attracted, which is 23.2% more than the figure for the fifth month of 2018.
The volume of revenues on Green Card policies, in turn, increased by 64.7%, to UAH 33.13 million of premiums in May, which is 24.91% of the total premiums for the month. KASKO ranked third in the revenue portfolio of TAS group with a share of 18%: some UAH 23.95 million of premiums were collected under land transport insurance contracts during the fifth month of the current year, which is 40.5% more than in the reporting period of 2018.
TAS Insurance Group in May raised UAH 3.81 million in premiums under property insurance contracts, UAH 3.13 million under voluntary medical insurance contracts, while revenues from other insurance contracts amounted to UAH 17.53 million.
In May, TAS Insurance Group paid UAH 58.69 million in insurance claim fees, which is 12.6% more than the amount paid by the company for the fifth month of last year.
Official rates of banking metals from national bank as of june 19
One troy ounce=31.10 grams
National bank of ukraine’s official rates as of 19/06/19
Source: National Bank of Ukraine
