Business news from Ukraine

Business news from Ukraine

UKRAINE’S FINANCE MINISTRY HOPES TO RAISE $3.5 BLN ON FOREIGN LOAN MARKET IN 2019

Ukraine’s Finance Ministry in 2019 plans to place eurobonds for the amount of UAH 102.9 billion or $3.5 billion on the foreign loan market, taking into account the forecast hryvnia exchange rate to the U.S. dollar.
The figures are outline in bill No. 9000 on the national budget for 2019 registered by the Verkhovna Rada on September 15, 2018.
According to the document, the securities’ maturity term would be from five to 15 years.
In addition, the Finance Ministry expects that the ministry would raise UAH 1.47 billion from the International Bank for Reconstruction and Development under the Social Safety Nets Modernization Project and UAH 18.375 billion of the macro-financial assistance from the European Union.
The total volume of domestic borrowings is planned at the level of UAH 202 billion, including UAH 6 billion thanks to the placement of nine-month government domestic loan bonds, UAH 8 billion – eight-month bonds, UAH 10 billion – one-year bonds, UAH 19 billion for three-month bonds pegged to the national currency. Another UAH 13 billion will be attracted through the placement of five-year government domestic loan bonds, UAH 58.694 billion – three-year and UAH 87.325 billion – two-year bonds (all – in the national or foreign currency).
Repayment of the principal of the state debt next year is planned in the amount of UAH 272.247 billion, including UAH 121.767 billion for external debt.
In addition, UAH 145.205 billion will be assigned to servicing the state debt, including UAH 56.44 billion for external one.

FM CONFIDENT UKRAINE TO RECEIVE FIRST TRANCHE OF EU MACRO-FINANCIAL AID AFTER REACHING AGREEMENT WITH IMF

Ukraine has fulfilled a major part of conditions for receiving the first tranche of macro-financial assistance (MFA) from the European Union in the amount of EUR 500 million, acting Finance Minister of Ukraine Oksana Markarova has said.
“Most of the conditions for the first tranche have already been fulfilled. Some of them are in the process of implementation at the final stage. I think getting the first tranche is realistic enough,” she told Interfax-Ukraine on the sidelines of the 15th YES Conference organized by the Victor Pinchuk Foundation in Kyiv.
“The question is about reaching agreements with the IMF, which are also important for the MFA. We are working on this too, as soon as there is, I hope, a positive solution, then we will be able to [to get the MFA],” Markarova said.
Commenting on the specific conditions for the first tranche of the MFA, she said that the Finance Ministry had already approved seven general tax consultations since July.
“After we approved amendments to the Tax Code that enable the Finance Ministry to render these consultations, we did not actively use this tool. It’s my personal priority,” Markarova said.
She said that some legislative requirements are differently interpreted by tax offices in regions and courts, and the role of these generalized consultations is to provide equal interpretation, therefore, the ministry will use this tool.
Asked about the fulfillment of the requirement to ensure effective verification of information on beneficiaries in the public register, Markarova said that this requirement has already been practically fulfilled, as it is prescribed.
“This is a matter of changing the legal acts. There is already a clear understanding of what needs to be changed in the regulatory framework to make this possible. I think we will fulfill this condition,” the acting minister said, adding that there is no need for legislative amendments.
At the same time, she said that, in general, the verification of beneficiaries is a very complex issue. Markarova said that there is no country that can show how it works, in particular, this is a new experience for European partners of Ukraine.
The acting minister also said that the draft national budget for 2019 announced all the required funds for the work of the High Anti-Corruption Court.

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CHINESE MYWAY AIRLINES TO LAUNCH FLIGHTS TO KYIV FROM TBILISI ON OCT 5

The new Georgian Myway Airlines from October 5, 2018 will launch regular flights to Kyiv (the Boryspil international airport) from Tbilisi, the airline wrote on its Facebook page on September 12. The regular Tbilisi-Kyiv-Tbilisi flights will be serviced twice a week – on Mondays and Fridays. From October 24, Myway will add one more flight on Wednesdays.
Myway Airlines was founded in 2018. It is a project of China’s Hualing Group.
Its fleet consists of two Boeing 737-80 aircraft.

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