The applicant for the purchase of Idea Bank (Lviv) and New Finance Service LLC (NFS, Kyiv) informed the bank and company’s parent Getin Holding S.A. (Poland) that it will not submit a binding offer to purchase them, according to a report from Getin Holding on the Warsaw Stock Exchange.
“Due to the end of the talks, the exclusivity for negotiations granted to the bidder has expired,” the holding said.
“[The Board] has decided today to continue the process of selling Idea Bank Ukraine shares and participation in NFS, while deciding to entrust Rothschild & Co with further activities aimed at selling 100% of Idea Bank Ukraine shares and 100% share in NFS, including in particular, conducting talks and negotiations with other potential investors,” Getin Holding said.
As reported, Getin Holding S.A. (Wroclaw) on February 5 signed an agreement with a Ukrainian buyer for the sale of 100% of the shares of subsidiary Idea Bank (Lviv) and 100% of the shares of NFS. According to market sources, Alfa Bank was the likely buyer of the bank, but officially this information has not been confirmed.
Idea Bank (formerly Plus Bank) was founded in 1989. According to the National Bank of Ukraine, as of January 1, 2021, Idea Bank ranked 25th in terms of total assets (UAH 7.914 billion) among 73 operating banks.
NSF is engaged in debt recovery, financial and insurance intermediation.
Earlier this week, Ukraine repaid early a short-term loan from Deutsche Bank AG London in the amount of about $350 million, attracted at the end of last year, a source in the market has told Interfax-Ukraine.
According to the source, taking into account interest, the payment reached some $354 million.
Interfax-Ukraine could not immediately reach the Ministry of Finance for confirmation of the information.
As reported, according to government resolution No. 1291 dated December 23, 2020, this is a bridge loan taken for up to six months at a rate of up to three-month LIBOR + 5.75%, which can be repaid ahead of schedule in the event of a change in the market price of Ukraine’s eurobonds or new issue on the terms determined by the loan agreement.
Early 2021, the Ministry of Finance said that in the last days of 2020 it attracted a short-term $340.7 million loan from Deutsche Bank. According to the ministry’s statistics, in December 2020, Ukraine’s debt to this creditor increased by $372.6 million, to $1.313 billion, and by the end of February 2021 it decreased to $1.272 billion.
Deputy Foreign Minister of Ukraine Vasyl Bodnar discussed with Ambassador of Spain to Ukraine Silvia Cortes Martin the preparation of the visit to Ukraine of Prime Minister of Spain Pedro Sanchez and the holding of a large-scale business forum.
“Meeting with Spanish Ambassador to Ukraine Mrs. Silvia Cortes Martin. We focused on preparing Pedro Sanchez’ visit to Ukraine and holding a large-scale business forum. We have agreed to take measures to develop the legal framework,” Bodnar wrote on Twitter on Wednesday.
He also thanked the ambassador for Spain’s support for Ukraine’s European integration path.
Mobile network operator Kyivstar has increased its 4G (LTE) network coverage in 19 regions and connected 1,195 more settlements to new mobile technologies.
According to a Wednesday report of the press service of the company, for this the operator has launched the technology of high-speed data transmission at 202 base stations.
The press service said that 493,000 residents of small settlements received the opportunity of having access to high-speed mobile Internet.
The 4G communication is supported by 23,600 Kyivstar base stations, which makes it possible for more than 87% of the Ukrainian population to access new mobile technologies.
According to the operator’s plans, by 2022, access to 4G should be provided for 90% of the population.
The Cabinet of Ministers has supplemented the list of goods originating from the Russian Federation, prohibited for import into Ukraine, with wheat, sunflower oil, detergents, and paper.
According to the document, the list of prohibited goods was also replenished with surfactants, newsprint, cardboard, kraft paper and kraft cardboard, toilet paper, cosmetic napkins, hand towels, tablecloths and napkins.
The list also includes containers, boxes, bags, packing bags, ropes made of other alloy steels, drilling tools, other trolleys and undercarriage balancing trolleys, axles, wheels and their parts, according to the resolution.
The resolution comes into force ten days after its publication.
The World Bank has raised its projection for Ukraine’s gross domestic product (GDP) growth in 2021 to 3.8%, while early January it estimated the prospects for recovery at 3%.
According to the World Bank’s Europe and Central Asia Economic Update, Spring 2021: Data, Digitalization, and Governance, the forecast for GDP growth in 2022 has been worsened to 3%, compared to 3.1% in January.
The World Bank said that only a partial recovery in GDP growth of 3.8% is expected in 2021, given high uncertainty regarding the rollout of the vaccine and the slow pace of structural reforms to address bottlenecks to investment and to safeguard macroeconomic sustainability. The GDP growth projection of 3.8% is also underpinned by positive base effects in agriculture and processing industry, the World Bank said.
In addition, the World Bank expects inflation this and next year at 5%, in 2023 – 5.8%.
The current account deficit in 2021 will be 1.3%, in the next two years – 2.8% and 3.3%, respectively, World Bank analysts predict.
The net inflow of foreign direct investment in 2021 should increase by 2.4%, the next year – by 2.6%, and in 2023 it is expected the growth to triple and amount to 6.2%.
At the same time, the World Bank predicts a reduction in public debt in relation to GDP from 63.2% in 2020 to 62.4% in 2021, as well as 59.7% and 57.8% in the next two years.
According to the bank’s expectations, after a 7.4% decline in 2020, Ukrainian exports will grow by 3.4% this year, and by 2% and 4.4% in 2022 and 2023, respectively. As for imports, after a decline of 11.5% last year, this indicator is projected to grow by 6.8% this year, 5% in 2022 and 4.8% in 2023.
As reported by the State Statistics Service, Ukraine’s real gross domestic product in 2020 fell by 4% after four years of growth.
