Import changes in % to previous period in 2021-2022
Source: Open4Business.com.ua and experts.news
The European Bank for Reconstruction and Development (EBRD) may grant Ukrzaliznytsia (UZ) a EUR200mn emergency support loan under sovereign guarantees.
As stated in a statement on the bank’s website on Tuesday, the bank’s board of directors plans to consider the project at a meeting on May 10, 2023.
According to the information, the loan consists of EUR100 mln of emergency financing of UZ capital investments and EUR100 mln of capital structure support.
It is expected that 50% of the loan will be secured by guarantees of G7/EU donors involved in the conditions when local commercial structures cannot guarantee risk covering mechanisms.
It is noted that with the help of the loan, UZ will be able to increase cross-border capacity with the EU by removing bottlenecks in border crossing, as well as to repair the relevant sections of the railroad bed that were damaged due to the full-scale invasion of Russia. With the funding, UZ will not only be able to renew key rail corridors at the border with the EU, but also to purchase rolling stock to provide comprehensive solutions for expanding the capacity of rail corridors with the EU.
“The project will support the company in the current critical issues that need to be addressed to improve operations and connectivity with the EU, continuing to provide a vital service to people and businesses in need of reliable logistics for key Ukrainian exports (including agricultural products) and critical imports,” the project description on the EBRD website said.
Earlier, Fitch Ratings reported that amid negative operating cash flow expectations for UZ in 2023, the company needs financing which could amount to EUR400m, including EUR199m from existing credit lines with the EBRD and EIB and $200m in the pipeline.
At the end of 2022, UZ’s outstanding debt amounted to 39.5 billion UAH, compared to 33.5 billion UAH in 2021, of which Eurobonds accounted for 82.8% and debt in foreign currency – 94.3%.
At the end of January, UZ signed an agreement with the holders of two issues of Eurobonds worth $895 mln on the deferral of coupon payments and repayment for 24 months. Under the agreements, the new maturity date for the $ 594.9mn 8.25% Eurobond is July 9, 2026, and for the $300mn 7.87% Eurobond – July 15, 2028.
As a result of the bond restructuring, the company received a deferral between 2023 and 2025: only 4% of the total debt is due during that period. The main payments are now due in 2026 – 58% of the current total debt (mostly $595mn Eurobonds) and after 2027 – 32% (mostly $300mn Eurobonds in 2028).
An International Monetary Fund (IMF) mission on Wednesday begins discussions with Ukraine’s representatives on a new full-fledged support program involving funding from the Fund.
“The IMF mission led by Gavin Gray begins discussions today with representatives of the Ukrainian authorities on a potential program to be supported by the IMF,” Vahram Stepanian, IMF Resident Representative in Ukraine, said in a statement.
Earlier, Ukrainian Finance Minister Sergei Marchenko announced the work of the IMF mission from March 8 to 15 in Warsaw.
“There we will agree on the terms and conditions, and filling, and volumes, and so on. Now it’s a little early to talk about specific details, because there are a lot of issues of internal discussion of the Fund,” said the head of the Ministry of Finance on March 1.
“I think we will find the necessary solutions so that in April we could have a full-fledged program with the Fund,” said Marchenko.
According to him, so far we are talking about a four-year program, whose task is to make the necessary policy adjustments so that Ukraine, which today spends 50% of its budget on military expenditures and the other 50% financed by the aid of partners, after the war came to a level of “more or less” self-sufficiency.
“The Fund does not yet put forward unbearable conditions that we cannot fulfill. We are talking about program, basic things: ensuring monetary and fiscal stability; reduction of the budget deficit and ensuring an acceptable level of burden on the budget and also good public administration and ensuring best corporate practices. And we are talking about anti-corruption programs, which have traditionally been part of IMF programs,” explained the head of the Ministry of Finance.
Prime Minister Denis Shmygal stated that the amount of the program may amount to $15 billion, of which Ukraine would like to receive $5 billion this year.
As earlier reported, last autumn, when the IMF was not ready to provide substantial financing at once, Ukraine requested a four-month Monitoring Program with Board of Directors (PMB) from the Fund, which the Fund approved on December 20.
An IMF mission concluded in Warsaw on Feb. 17, resulting in a statement that a staff-level agreement (SLA) had been reached to end that program early and move forward with preparations for a new, expanded program involving financing.
Kiev hopes that in the beginning of the second quarter of 2023, the PMB will be replaced by a multiyear extended funding program EFF amounting to about $15 billion, which can cover the gap in covering the $ 38 billion deficit of the state budget-2023, which is now, according to about $5-10 billion.
A petition on the website of Kiev City Council urging to reduce curfew in Kiev and set it from 00:00 to 5:00 has collected the necessary 6 thousand votes for consideration.
According to the petition platform on the website of the Kiev City Council, this petition was filed on January 23 and as of March 8 had collected the necessary 6 thousand votes for consideration.
“Reduce the curfew from 00:00 to 5:00. Since most wage earners have no way to get home on time, or extend public transportation,” the text of the petition reads.
As of today, the curfew in Kiev lasts from 23:00 to 5:00 every day.
The petition must be considered by the responsible persons within ten working days from the date of publication of the information about the beginning of its consideration and, if possible, executed.
Guided by the legal requirements and taking into account the proposal of the Deposit Guarantee Fund (FGVFL), the National Bank of Ukraine adopted its decision #90 of March 7 to withdraw the banking license and liquidate JSC Bank Forward starting March 8, 2023.
In a Wednesday press release, the NBU reminded that its board had decided on Feb. 7 to categorize Forward Bank as insolvent due to its failure to bring its activities into compliance with Ukrainian legislation, including the regulations of the National Bank, after categorizing it as a problem bank.
From March, 1 FGVFL started paying out the guaranteed compensations to the depositors of the bank “Forward” according to the contracts, which term expired till February, 7, 2023 and the contracts of bank settlement. The first part of the general register of depositors includes information on more than 48 thousand accounts with a total guaranteed amount of almost 326 million UAH.
The ultimate beneficial owner of the bank is Russian citizen Rustam Tariko. The Decree of the President of Ukraine in October 2022 enacted a decision of the National Security and Defence Council of Ukraine, which imposed personal sanctions on Tariko.
According to the NBU, as of January 1, 2023, the bank ranked 46th by assets (UAH 2.36 billion) out of 67 then-existing banks.
Export of Ukraine by countries in Jan-Nov 2022
Source: Open4Business.com.ua and experts.news
