Finance Minister of Ukraine Oksana Markarova has said that in two years Ukraine seeks to cut state debt to 40% of GDP and will strive for deficit-free budget in the future. She said on the Freedom of Speech by Savik Shuster program on the Ukraina TV Channel last week that permanent restructuring of state deb is unfavorable, as it would give the country fewer resources today than reputation losses.
“Ukraine has always been very unpredictable. We rapidly increased our debt from 2006 to 2008, then it also grew rapidly from 2013 to 2014, because it was in foreign currency, because in 2013, three billion in foreign currency was borrowed. We need to move away from this. That is, now we are again reducing debt compared with GDP, and this year it is less than 60%,” Markarova said.
The finance minister said that for 2020 the goal is to reduce public debt to 52% of GDP, and “in two years to reach even 40%.” “This will give us the opportunity of living like European countries: when they need development, they borrow money, when they do not need it, they do not borrow. Because debt in itself is not bad, it is bad when we take a debt and live on it,” she said.
Markarova said that therefore, next year the budget deficit will be only 2% of GDP, this year it is 3.2%. “That is, we will constantly try to come to a budget without deficits, and this will give us the opportunity of absolutely resolving all our debt issues and direct the money we earn to important and priority issues,” she said.
The minister also assured that the Ukrainian authorities constantly communicate with international partners, investors and gives all the information about what the country is going to do. “For the first time last year we adopted a debt strategy and now we are constantly telling how we will reduce this debt,” the finance minister said.
InSoft Software has increased its share in the service direction of the Kharkiv IT-company, Rozdoum, and has become one of the shareholders of the Kyiv IT-company Rademade. Therefore, currently, the investment portfolio of InSoft Software consists of three companies: Lenal, Rozdoum, Rademade.
InSoft Software also announced the change of its name to ITernal Group. Among the reasons for rebranding, the representatives of the company say about the expansion of the range of services, a change in the logic of positioning, and feedback from customers.
ITernal Group provides turnkey solutions on software development, strengthens customers’ teams with its developers, and helps foreign clients open R&D offices in Ukraine (by purchasing small companies, hiring employees, renting offices, and assisting with further service). The company is actively developing both organically and with the help of M&A strategy, consolidating controlling stakes in IT-companies.
“The creative economy of Ukraine is developing dynamically. The amount of investments and the number of startups in this industry are growing rapidly. According to experts, revenues in the Ukrainian IT-sector will amount to about $5 billion in 2019. We and our partners are convinced that ITernal Group will take a worthy place in the market and will contribute to the development of the innovative economy of Ukraine,” Vasyl Khmelnytsky, Founder of UFuture, said.
“The IT-outsourcing market has changed a lot, it has become mature. It’s getting more difficult for small companies to compete with big players in attracting contracts, customers, and employees. Therefore, offer differentiating is getting more important. We focus on ecosystem solutions. Being able to integrate small companies into one structure while preserving the brands and unique culture of the companies, we are quickly building a major player, and thus gaining the ability to attract more significant customers. On the other hand, our clients’ conversion is improving thanks to the wide range of the services provided by ITernal Group. In addition to the classic software development, we and UFuture bring M&A experience, access to a large innovative IT-school, and the most modern real estate for our clients”, Vitaly Gorovoy, Managing Partner of InSoft Partners, emphasized.
ADDITIONAL INFORMATION
In the summer of 2019, UFuture and InSoft Partners entered into a strategic partnership agreement in IT-industry and established a joint company.
Within this business, InSoft Partners is responsible for the search and purchase of controlling stakes in IT-companies, their integration into one structure, strategic management, and development. UFuture contributes to the organic growth of the joint business and the search for strategic partners through the international network of contacts.
UFuture is a holding company of Ukrainian entrepreneur Vasyl Khmelnytsky that integrates his business and impact-investment projects. The company has a diversified portfolio of assets in the fields of real estate, infrastructure, industry, renewable energy, pharmaceuticals, and IT. Currently, UFuture’s assets are estimated at $550 million, and the total capitalization of the businesses it invested in is more than $1 billion.
InSoft Partners is a niche investment managing company that focuses on IT-business. Having a team with extensive experience in the development of IT-companies, InSoft Partners joins the operating activities of portfolio companies, contributing to their active growth (through lead generation, changing business processes, etc.). Among the counterparties of InSoft Partners are the famous American investment fund, Oak Tree Capital Management, and FinPoint/Rothschild&Co.
Volume of construction production by type by region in Jan-Sept, 2019 (mln.Uah)
FC Shakhtar Donetsk has beaten Dynamo Kyiv in Kharkiv in the match of the 14th round of the Ukrainian Premier League with 1:0 score. The only goal in the 18th minute was scored by “miners'” defender Serhiy Kryvtsov.
In the 82nd minute after the cries of Dynamo fans, which he considered insulting, the Brazilian Shakhtar midfielder Tyson showed an indecent gesture to the stands and was removed from the field.
After this incident, the referee took the teams off the field for several minutes and interrupted the match. Then the game still continued.
After 14 rounds, Shakhtar is leading in the championship of Ukraine with 40 points. The Luhansk Zaria takes the second place with 28 points. Desna and Dynamo scored 27 points each
National bank of Ukraine’s official rates as of 11/11/19
Source: National Bank of Ukraine
Official rates of banking metals from national bank as of November 11
One troy ounce=31.10 grams
