The Financial Stress Index (FSI) in April fell and reached 0.2 points by the end of the month after a bounce to 0.3 in March, the National Bank of Ukraine (NBU) said in a weekly bank survey posted on its website on Wednesday.
According to the document, corporate and banking sub-indices are declining, and the latter, in particular, due to a drop in the yield of securities.
The National Bank said that at the end of April the outflow of hryvnia-pegged time deposits and foreign currency funds of the population stopped. The regulator added that the hryvnia funds of Ukrainians have been at maximum levels for the second week since the beginning of March, and only foreign currency time deposits of the population are still declining.
According to the report based on the data from 22 largest banks, from April 27 through April 30, the hryvnia funds of individuals maintained stable growth of 0.3%, and that of business entities of 0.9%. Foreign currency funds of individuals for the same period increased by 0.2%, and business entities’ decreased by 0.1%, compared with the previous week.
The regulator said that the portfolio of foreign currency loans issued to small and medium-sized enterprises in April markedly worsened, in particular, from the beginning of April, the share of hryvnia loans overdue over a week in the portfolios of banks increased from 25.8% to 30.9%, and foreign currency loans – from 30.7% up to 38.3%.
The National Bank also said that at the beginning of May the share of working bank branches increased from 75.5% to 77.3%, and that of ATMs – from 95.8% to 96.3%.
The insurance companies that are members of the Motor (Transport) Insurance Bureau of Ukraine (MTIBU) in January-March 2020 increased collection of insurance premiums on compulsory insurance of vehicle owners’ civil liability (OSAGO) by 20.28% compared to with the same period of 2019, to UAH 1.3 billion.
According to data published on the MTIBU’s website, the number of OSAGO contracts in the first quarter increased by 0.55%, to 1.776 million
The total amount of accrued insurance claims under internal insurance contracts increased by 15.15%, to UAH 684.3 million. In particular, more than UAH 123 million is paid using European accident record forms, which is 12.8% more than in January-March 2019.
The bureau also recorded an increase in the number of settled claims for insurance compensation by 10.3%, to 37,527, of which 13,041 using European accident record forms (an increase of 10.35%).
The MTIBU is the only association of insurers that carries out compulsory insurance of vehicle owners’ civil liability for damage caused to third parties. The bureau members are 49 insurance companies.
The European Parliament will vote on the proposal of the European Commission to provide Ukraine EUR 1.2 billion to combat the economic consequences of the coronavirus COVID-19 pandemic on May 13 on a request for an urgent procedure. The corresponding item is recorded on the agenda of the session, which will be held from May 13 to May 16.
The issue of macro-financial assistance to enlargement and neighbourhood partners in the context of the COVID-19 pandemic crisis was recorded first in the section on voting on a request for an urgent procedure.
Due to the restrictive measures taken in connection with the COVID-19 pandemic, the majority of EP deputies will vote remotely without discussion. The vote result is expected to be positive.
Ukraine is one of ten partner and neighboring countries that will receive a total of up to EUR 3 billion in aid. Moreover, Kyiv will be provided with the largest amount of funds. Thus, Albania will receive EUR 180 million, Bosnia and Herzegovina – EUR 250 million, Georgia – EUR 150 million, Jordan – EUR 200 million, Kosovo – EUR 100 million, Moldova – EUR 100 million, Montenegro – EUR 60 million, Northern Macedonia – EUR 160 million and Tunisia – EUR 600 million.
Earlier, on May 5, this proposal of the European Commission, which was adopted on April 22, was supported by the ambassadors of the member states of the European Union, thus giving a green light for the further procedure – voting in the European Parliament with subsequent final decision within the framework of the EU Council.
These funds will be provided within 12 months in the form of loans on “highly concessional terms to help these countries cover their urgent financing needs.”
The funds will be available for twelve months and will be paid in two installments. The maximum average loan maturity is 15 years.
Explaining the details of the allocation of money, Ukraine’s representative to the EU Mykola Tochytsky has said that the macro-financial assistance (MFA) of the European Commission to Ukraine in the amount of EUR 1.2 billion will be provided in two tranches: first EUR 600 million will be provided at once after the approval of the decision by the European Parliament and the Council of the European Union unconditionally, and the second tranche of EUR 600 million will be provided under conditions, the negotiations on which will take place soon.
National bank of Ukraine’s official rates as of 07/05/20
Source: National Bank of Ukraine
Official rates of banking metals from national bank as of May 07
One troy ounce=31.10 grams
Ukraine’s FX reserves in April 2020 tentatively grew by 3.1% or $800 million, to $25.695 billion, the National Bank of Ukraine (NBU) said on its website on Thursday.
“Transactions of the National Bank to manage reserves and transactions on the FX market first of all contributed to the increase in FX reserves,” the central bank said.
