Financial assistance in the amount of UAH 100.858 million will be provided to 25 agricultural enterprises in Kyiv region as part of the government’s e-Work program to support small and medium-sized businesses, Deputy Minister of Agrarian Policy and Food Denys Bashlyk said on Facebook.
According to him, the funds will be used to develop horticulture, berry growing, viticulture, and greenhouse farming. Thus, farmers will receive grants worth UAH 80.858 million for the development of horticulture and UAH 20 million for greenhouses. So far, UAH 74.401 million has been paid to them.
In addition, since the beginning of the year, 902 farmers in the Kyiv region have received UAH 10.402 billion in bank loans for farm development, the deputy minister stated.
As reported, since the beginning of the year, 12.3 thousand agricultural enterprises have received UAH 65.2 billion in bank loans for development. Of these, 9.6 thousand agricultural enterprises received UAH 37.5 billion in loans under the state program “Affordable Loans 5-7-9”.
In the third quarter of 2023, state-owned PrivatBank once again topped the list of banks with the highest net profit with UAH 13 billion 623.5 million, followed by two other state-owned banks: Oschadbank with UAH 7 billion 338.2 million and the nationalized Sens-Bank with UAH 3 billion 440.5 million.
According to the data published by the National Bank of Ukraine on its website, the top five banks with the highest net profit in the third quarter also include two banks with foreign capital: Raiffeisen Bank – UAH 3 billion 17.1 million and Ukrsibbank – UAH 2 billion 98.9 million.
The second five banks were state-owned: the private Ukrainian FUIB – UAH 2 billion 4.4 million, the foreign subsidiary of OTP Bank – UAH 1 billion 893.4 million, the state-owned Ukreximbank – UAH 1 billion 619.2 million, and two other banks with foreign capital: Citibank – UAH 1 billion 469.7 million and Credit Agricole Bank – UAH 1 billion 299.3 million.
Universal Bank (mono) made almost the same net profit in July-September of this year – UAH 1 billion 294.4 million, while Kredobank, which follows, made a much smaller profit of UAH 594.6 million.
Two other banks made profits of over UAH 300 million in the third quarter: A-Bank – UAH 355.2 million and Ukrgasbank – UAH 325.0 million.
Of these 14 banks, only four have completed their reserves: Sense – UAH 548.0 million, while City, Raif and Credit Agricole – from UAH 30 million to UAH 20 million, while FUIB disbanded them by UAH 1 billion 413.4 million, Mono – UAH 1 billion 136.6 million, OTP, A-Bank and Ukrgas – from UAH 555 million to UAH 510 million.
The list of 7 unprofitable banks in the third quarter was headed by First Investment Bank of the sanctioned shareholders with a loss of UAH 33.0 million, while Credit-Dnipro and Privex-Bank also suffered similar losses of UAH 29.8 million and UAH 27.5 million, respectively.
Overall, in the third quarter, the net profit of 63 solvent banks amounted to UAH 42.33 billion, with provisions released by UAH 5 billion and total assets increasing by UAH 87.25 billion.
The three most profitable state-owned banks were the leaders in terms of asset growth: Privat – UAH 36.84 billion, Oschad – UAH 18.26 billion, and Sens – UAH 11.36 billion. This allowed Sens to return to the top ten banks by assets, from which it had fallen in June before the nationalization, and immediately to 8th place.
In the third quarter, Ukrexim’s assets decreased by UAH 15.65 billion, Pivdennyi’s by UAH 6.99 billion, and Ukrgas’s by UAH 1.54 billion, and 23 banks in total showed a decline in assets.
In the third quarter, banks increased their portfolio of government bonds by UAH 23.56 billion, with City – UAH 4.61 billion and Ukrgas – UAH 4.48 billion, followed by TAScombank, FUIB and IIB – from UAH 2.5 billion to UAH 2.1 billion.
In July-September, Ukrexim reduced its investments in domestic government bonds the most – UAH 2.45 billion, Sens – UAH 1.24 billion, Privat – UAH 0.7 billion, and First Investment Bank – UAH 0.48 billion.
Overall, PrivatBank remained the most profitable bank by a wide margin in the first nine months of this year, with UAH 43.37 billion, or 39.5% of the banking system’s net profit for the period.
In January-September, Oschad received UAH 14.18 billion in net profit, Raif – UAH 6.14 billion, FUIB – UAH 5.68 billion, Ukrsibbank – UAH 5.66 billion, Sens – UAH 5.58 billion, OTP Bank – UAH 4.75 billion, City – UAH 4.23 billion, and Ukrexim – UAH 3.60 billion.
Among the 12 banks whose net profit for the first nine months exceeded UAH 2 billion were Ukrgas – UAH 2.92 billion, Universal (mono) – UAH 2.86 billion, and Credit Agricole – UAH 2.29 billion.
Prime Minister Denys Shmyhal says Japan plans to allocate EUR 160 million to support Ukraine’s economic recovery projects.
“I have announced our priorities for rapid recovery: energy, housing, critical infrastructure, humanitarian demining and business support. I am grateful to the Japanese delegation for today’s mission, which will further involve Japanese companies in the reconstruction,” Shmyhal wrote on his Telegram channel on Monday following a meeting with Japanese Minister of State for Foreign Affairs Kiyoto Tsuji, Minister of State for Economy, Trade and Industry Kazuchika Iwata, and representatives of Japanese business.
According to the Prime Minister, Ukraine is interested in establishing joint ventures, especially in the processing industry. “Cooperation in agriculture, metalworking, machine building, critical raw materials and IT is important for us. Japan’s experience in post-war recovery can be useful for Ukraine’s economic recovery,” Shmyhal added.
The National Bank of Ukraine (NBU) has developed a regulation on the transition of the Ukrainian insurance market to European standards to bring insurers’ activities in line with Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the establishment and conduct of insurance and reinsurance activities (Solvency II).
According to the NBU’s website, the regulation on establishing requirements for insurer solvency and investment activities has been developed and proposed for public discussion and consists of two main blocks.
The first block includes requirements for ensuring solvency, in particular, establishes the procedure for calculating regulatory capital and eligible regulatory capital, taking into account restrictions on the composition and structure of eligible assets for their calculation, as well as the procedure for calculating solvency capital. Thus, the minimum capital under the simplified approach for certain categories of insurers, in particular, life insurers and non-life insurers with significant volumes of activities, is set at the level of at least UAH 48 million, and for others – UAH 32 million.
Insurers will apply a simplified approach to calculating solvency capital based on insurance premiums, insurance claims, technical reserves, etc. until 2027.
The second block includes requirements for the insurer’s investment activities, including assets to cover technical reserves and restrictions on investment.
The NBU notes that the regulation will come into force on January 1, 2024, and will provide for a six-month period for insurers to bring their activities in line with the new requirements. After that date, the NBU will not apply any enforcement actions to insurers for violating solvency requirements if they implement their recovery and/or financing plans.
Comments and suggestions on the draft are accepted until December 18, 2023.
The EU Solvency II Directive primarily concerns the amount of capital that insurance companies must hold to reduce the risk of insolvency. The next steps to strengthen the solvency requirements for insurers in Ukraine, according to this directive, will be to determine the procedure for assessing certain categories of eligible assets and to introduce requirements for calculating solvency capital and minimum capital under the basic approach for certain categories of insurers from 2027.
Argentina on Sunday, Nov. 19, elected libertarian Javier Miley, a committed radical to fixing the country’s deep economic crisis, as its new president, Reuters reported.
“According to official results, Miley won almost 56% against 44% for his rival, Peronist economy minister Sergio Massa,” the agency said in a statement.
It is noted that Miley promises to carry out shock therapy of the Argentine economy. He promises to close the central bank, abandon the peso and cut spending – potentially painful reforms that have resonated with voters angered by the economic crisis.
“Argentina’s new president will have to deal with empty government and central bank coffers, a $44 billion International Monetary Fund debt program, and inflation approaching 150%,” the agency stresses.
In addition, Reuters writes, a victory by Miley would change Argentina’s political landscape and economic scheme, and could affect trade in grain, lithium and hydrocarbons. In addition to all this, Miley criticizes China and Brazil, saying he will not deal with “communists” and favors stronger ties with the United States.
Benchmark crude oil prices are rising on Monday morning after a jump last Friday.
The price of January futures for Brent on the London ICE Futures exchange at 7:11 a.m. was $81.16 per barrel, which is $0.55 (0.68%) higher than at the close of the previous session. Last Friday, these contracts jumped in price by $3.19 (4.1%) to $80.61 per barrel.
Quotes for January futures for WTI in electronic trading on the New York Mercantile Exchange (NYMEX) at the specified time increased by $0.53 (0.7%) to $76.57 per barrel. At the end of the previous session, they rose by $2.99 (4.1%) to $75.89 per barrel.
Due to the active rise on Friday, both brands minimized the weekly decline. Over the past week, Brent prices fell by 1%, WTI – by 1.7%.
The sharp rise in quotations on Friday was caused by rumors that OPEC+ could extend oil production cuts for several months or increase the volume of fuel production cuts.
“Anyone who has been trading oil for at least 10 years will remember the Thanksgiving Day shock of 2014 when OPEC abandoned production quotas and plunged prices from $80 to around $45 per barrel in a matter of weeks,” Sevens Report Research editor Tyler Ritchie told MarketWatch.
“The risks are now tilted in favor of the bulls, as tighter production restrictions will push futures back to $100 per barrel,” he added.
At the same time, data from the oilfield services company Baker Hughes showed that the number of oil rigs operating in the United States increased by six last week, the highest rate since February, and amounted to 500 units. The number of gas rigs, meanwhile, fell by four to 114, the lowest level since early September.
