The National Bank of Ukraine (NBU) at the 15th auction for placement of three-month certificates of deposit (CDs) at 25% per annum on Friday, July 14, sold them for UAH 26.07 billion, while the volume of redemption of CDs placed at the second auction on April 14 amounted to only UAH 8.87 billion.
As reported on the NBU website, as a result, the volume of three-month DCs in circulation began to grow again and reached a new maximum of UAH 175.44 billion.
The number of buyers, as a week ago, amounted to 43, the regulator specified.
The central bank pointed out that last Friday the volume of overnight DS sales amounted to UAH 355.71 billion, compared to UAH 373.92 billion a week earlier. On the other days of last week, the NBU placed them in the amount of UAH 331.1-337.8 billion.
As reported, the National Bank said on March 16 that from April 7 it decided to lower the rate on overnight certificates of deposit from 23% to 20%, but at the same time to place DCs for a period of three months at a discount rate of 25%, depending on the volume of deposits attracted by banks for a period of three months or more.
On the eve of the debut auction, the NBU set for banks individual initial limits for the purchase of three-month DC at the level of 70% of the balances of individuals’ deposits in the national currency in these financial institutions as of April 4, with an initial term of 93 days or more.
The regulator explained that to the initial limit is added the second dynamic part – multiplied by the multiplier “3.0” increase in the volume of such a portfolio of hryvnia deposits of individuals for 93 days after April 4.
Banks can apply for purchase of three-month DS both from the NBU and in the interbank market within the above limit. The National Bank places them weekly on Fridays.
In the inflation report, the NBU specified that as of April 4, term deposits in the national currency for a period of three months or more were worth the equivalent of UAH 154.5 billion, or 26.9% of all deposits, for a period of up to three months – UAH 40.4 billion, or 7%, while UAH 378.4 billion, or 66%, accounted for demand deposits.
According to the head of the National Bank Andriy Pyshnyy, the share of term deposits reached 35% at the end of May, while the share of deposits with maturities of 3 to 12 months in the total volume of new term deposits increased to 76%.
The NBU also said in mid-June that it plans to study the revision of 3-month deposit multiples in July.
Benchmark crude oil prices are rising moderately on Tuesday morning after declines in the previous two sessions.
The price of September Brent futures on London’s ICE Futures exchange is at $78.68 a barrel by 8:46 a.m. Q2, up 18 cents (0.23%) from the previous session’s close. On Monday, these contracts fell in price by $1.37 (1.7%) – to $78.5 per barrel.
Quotes of futures for WTI oil for August at the electronic trading of the New York Mercantile Exchange (NYMEX) to the specified time rose by 23 cents (0.31%) and amounted to $74.38 per barrel. At the end of the previous session they fell by $1.27 (1.7%) – to $74.15 per barrel.
Oil finished in the negative two last sessions in a row. On the eve, the negative factor was statistical data from China, which indicated the growth of China’s GDP by 6.3% in annualized terms in the second quarter after a rise of 4.5% in January-March. The consensus forecast of experts surveyed by Trading Economics had called for a 7.3% increase.
“Weaker-than-expected macroeconomic data from China and oil market reaction suggest that demand remains the key concern for the market,” said ING Groep NV strategist Warren Patterson. – However, we still maintain a constructive outlook and believe that the gap between supply and demand will narrow significantly in the second half of the year”.
In addition, the decrease was caused by the news of resumption of production at Al Sharara and Al Fil fields in Libya, where production was suspended last week due to protests.
On Tuesday, prices are supported by the forecast of the US Department of Energy, which provides for a decrease in shale oil production in the States in August to 9.4 million barrels per day. If the forecast comes true, the production cut will be recorded for the first time since December last year.
Forecast of unemployment rate in Ukraine according to methodology of international labor organization until 2025
Source: Open4Business.com.ua and experts.news
The Pechersky district court of Kiev on July 13 decided to recover from the former owner of Commercial Bank Financial Initiative PJSC, Oleh Bakhmatyuk, as guarantor, more than UAH 1.8 billion in favor of the National Bank of Ukraine on one of the refinancing loans provided earlier and not returned.
“Unfortunately, it is too early to put a dot in this case, but the court’s adoption of this decision is a defining event for the restoration of the violated rights of the National Bank. We are convinced that in case of its appeal, it has every reason to remain in force,” the NBU quoted in a press release on Monday the comment of the director of the legal department, Oleksandr Zima.
The National Bank recalled that in 2014 it concluded an agreement with Financial Initiative on a refinancing loan to maintain liquidity in the amount of UAH 2 billion, and Bakhmatyuk vouched for the proper fulfillment of the bank’s obligations to repay the loan funds. Since both the bank and its owner failed to fulfill their obligations, in 2017 the National Bank filed a lawsuit with the Pechersky District Court of Kyiv to recover the debt from him. During the consideration of the case in court at the expense of the pledged property provided by the property guarantors to ensure the fulfillment of the obligations of the bank there was a repayment of the loan debt in the amount of about UAH 200 million.
Now six more cases remain under consideration by the Pechersky district court of Kiev on claims of the NBU against Bakhmatyuk as a guarantor for the debts of PJSC “VEB Bank” and the bank “Financial Initiative” on other refinancing loans, and the total amount of debt Bakhmatyuk as a guarantor to the National Bank is almost UAH 8 billion, the NBU said.
It specified that it classified VIB Bank as insolvent on November 20, 2014, and Financial Initiative Bank – on June 23, 2015.
Bakhmatyuk rejects the accusations of the National Bank and puts forward counter accusations. In particular, in 2020, he obtained a decision of the Supreme Court to recognize the National Bank’s actions to withdraw Financial Initiative Bank from the market as unlawful. The businessman, who has been living in Vienna for the last few years, has also repeatedly declared his readiness to compromise with the National Bank on the issue of sureties, offering to conclude an amicable agreement with a seven-year installment period with the possibility of increasing the bail to the NBU, but to no avail.
Shareholders of Sukhaya Balka mine (Krivoy Rog, Dnipropetrovsk region), which is part of Oleksandr Iaroslavskyi’s DCH group, have allocated UAH 1 billion 4.865 million from retained earnings for 2008, 2010 and 2011 for dividends.
According to the minutes of the extraordinary meeting of shareholders held remotely on July 10, a copy of which is available to Interfax-Ukraine, the payment of dividends to shareholders of the company for 2008, 2010, 2011 is made at the rate of UAH 1.2 per common share, including: 0.24 UAH for 2008, 0.23 UAH for 2010 and 0.73 UAH for 2011.
It is specified that a part of net profit received by the company by results of activity in 2008 in the amount of UAH 200 mln 973.01 thou., from profit for 2010 – UAH 192 mln 599.14 thou., from profit for 2011 – UAH 611 mln 292.91 thou. will be directed to dividends.
Sukhaya Balka mine is one of the leading mining companies in Ukraine. It extracts iron ore by underground mining. The mine includes Yubileynaya and Frunze mines. Frunze.
DCH Group acquired the mine from Evraz Group in May 2017.
According to NDU data for the first quarter of 2023, Yaroslavskyi, who is designated as a non-resident of Ukraine (UK citizen – IF-U), directly owns 77.4193% of the mine’s shares, while resident individual Artem Alexandrov owns 20%.
The authorized capital of Sukhaya Balka PJSC is UAH 41.869 mln, the nominal value of a share is UAH 0.05.
