Ukrainian businesses expect a slowdown in inflation and not so strong devaluation of the national currency, according to findings of a regular survey of business expectations, conducted by the National Bank of Ukraine in the second quarter of this year. “The average forex rate in 12 months is UAH 28.82 per U.S. dollar (the forecast given in Q1 was UAH 29.32 per U.S. dollar),” the NBU said in a document.
According to it, if in the first quarter of this year, respondents estimated inflation in the next 12 months at 9%, their forecast given in the second quarter is 7.7%.
The National Bank adds that Ukrainian companies have also improved their expectations for economic growth in Ukraine and the development of their own business, although the Business Expectations Index (BEI) for the next 12 months slid slightly to 117.8% from 119.7% a quarter earlier.
According to the survey, entrepreneurs began to better assess their current financial and economic situation – a positive response balance of 12.6% versus 8% in the first quarter. They expect to improve the situation thanks to the increase in production and sales, primarily for export. In this connection, companies plan to increase investment in equipment and more actively borrow funds.
Ukrainian President Volodymyr Zelensky says he hopes for close and fruitful cooperation with new European Commission President Ursula von der Leyen. “My sincere congratulations to Ursula von der Leyen on her appointment as the first female President of the European Commission. I wish you every success and look forward to working with you in close cooperation to develop further strong Ukraine-EU relations,” he said on Twitter.
According to earlier reports, members of the European Parliament voted in support of Ursula von der Leyen’s candidacy for the post of European Commission president in Strasbourg on Tuesday.
The main pipe enterprises of Ukraine in January-June 2019 increased production of pipes made of ferrous metals, according to recent data, by 4.3% compared to the same period of 2018, to 564,200 tonnes, while in June they manufactured 87,900 tonnes.
The Ukrtruboprom association told Interfax-Ukraine, in particular the enterprises of the union for January-June 2019 raised production of pipes by 5.8%, to 426,200 tonnes, and in June the output was 66,900 tonnes.
At the same time, Khartsyzsk Pipe Plant (Donetsk region), which is located in the territory not controlled by Ukrainian authorities, is standing idle this year, just like last year.
During this period, the output of pipes at Interpipe Nyzhniodniprovsky Pipe Rolling Plant decreased by 7.9%, to 136,400 tonnes (in June some 24,300 tonnes), at Interpipe Novomoskovsk Pipe Plant increased by 5.9%, to 53,900 tonnes (8,100 tonnes). Interpipe Niko Tube raised production by 14.9%, to 209,600 tonnes (30,700 tonnes).
Dnipropetrovsk Pipe Plant increased production of pipes by 38.8%, to 13,600 tonnes (in June some 1,700 tonnes). Centravis increased output by 12.9%, to 11,400 tonnes of stainless pipes (1,900 tonnes).
KSG Agro Holding has signed an agreement on the restructuring of a loan debt to Germany’s Landesbank Baden-Wuerttemberg (LBBW).
The amount of the loan provided in October 2012 was EUR11.5 million, the balance of the debt was EUR8.3 million, the holding’s press service said. Some 33% of the debt, which is EUR3.2 million, is to be repaid. The agricultural holding borrowed the funds to buy equipment from the German company Big Dutchman for its pig farm in the village of Nyva Trudova in Dnipropetrovsk region (LLC Rantier).
“Successful restructuring means available working capital, which will be spent on developing existing projects and launching new ones in the field of crop production and pig breeding,” Chairman of the KSG Agro Holding’s Board of Directors Serhiy Kasyanov said.
As reported, KSG Agro in April 2019signed an agreement on loan restructuring to Big Dutchman with a decrease in debt from EUR4.8 million to EUR1.03 million.
KSG Agro in the first quarter of 2019 increased net profit by 1.6 times, to $3.46 million, while revenue fell by 12.5%, to $3.4 million. Financial income for the three months of 2019 included $4.3 million in profit from restructuring.
Official rates of banking metals from national bank as of july 17
One troy ounce=31.10 grams
