Business news from Ukraine

Business news from Ukraine

No outbreaks and cases of cholera in flood-affected areas

There are no outbreaks and cases of cholera in the flood-affected areas of Kherson, Zaporizhzhia, Mykolaiv, Dnipropetrovsk and Odesa regions, the Ministry of Health reported.
“There is a mass fake spread in the network regarding cholera outbreaks in the regions affected by the flooding. This information does not correspond to reality and is part of the hostile IPSO” – says the department in his Telegram-channel.
The Ministry of Health emphasizes that to date, no confirmed cases of cholera have been registered in Ukraine in these territories.

Rada finance committee proposes to limit interest rates on consumer loans

Limit the interest rate on consumer loans by 1% per day – this is the bill #9422 initiated by the head of the Parliamentary Committee on Finance, Tax and Customs Policy Daniel Getmantsev with 12 colleagues, while recently the National Bank has proposed a tougher ceiling – 0.8% per day.
“Today, ultra-high prices are fixed in the microcredit market: the nominal rate can reach 5% per day, and the average nominal annual interest rate – more than 1000% per annum. That’s why we initiated with colleagues a bill to improve state regulation of financial services markets,” Getmantsev wrote in his Telegram channel on Monday.
The rate of 1% per day according to the formula of compound interest brings to an annual rate of about 3880%, 0.08% – 1930%.
According to the head of the committee, it is also proposed to prohibit the lender to require payment of any fees not specified in the contract on consumer credit, as well as unilaterally extend the term of the loan – prolongation should be carried out solely by signing a supplementary agreement by agreement of the parties.
Getmantsev said that the bill requires the transfer of credit information about all consumer loans, regardless of amount to the credit bureau.
The text of the bill is not yet available on the parliament’s website.
National Bank in its report of May 1 on the proposed changes to the law “On consumer credit” proposed to give the regulator the right to establish minimum requirements for the process of checking the creditworthiness of the borrower. “Since some financial companies do not currently have such requirements, there is virtually no assessment of the borrower’s creditworthiness. At the same time, the lender itself deliberately chooses a business model, in which a bona fide borrower pays exorbitant interest not only for itself, but also for those who do not fulfill their obligations,” explained the NBU.
In addition, the National Bank initiated additional penalties for violations of the established requirements, as the rules without liability for their violation are usually ineffective.

Volume of construction works performed in Ukraine in January-March increased by almost 9%

The volume of construction work performed in Ukraine in January-March 2023 increased by 8.4% compared to the same period in 2022 – up to 22.1 billion UAH, according to the State Statistics Service (Derzhstat).
According to the State Statistics Service, in March 2023 the index of construction works was 233.1% compared to March 2022. At the same time, the index increased by 37.9% in March against February this year.
According to the State Statistics Committee, in the first quarter of 2023 to January-March 2022 the decrease in construction was observed in the residential construction – by 13.65%, to 3.88 billion UAH (70.4%) and non-residential – by 0.16%, to 5.74 billion UAH (80.7%), whereas in the segment of engineering structures increased by 23.11%, to 12.48 billion UAH (99.6%).
The share of new construction to the total volume of construction works was 46.5%, repair – 31.3%, reconstruction and technical re-equipment – 22.2%.
The State Statistics Service notes that the publication of data was delayed due to the martial law. The statistical data excludes the temporarily occupied territory and the part of the territory where military operations are (were) taking place.

“Prometey” received $2 million from FUIB to support export contracts

Prometey” group of companies has signed an agreement with the First Ukrainian International Bank (FUIB, Kiev) for $2 mln, according to the press service of the agricultural holding.
According to the message, the credit agreement provides for trade financing under export contracts.
According to Prometheus, the funds raised will activate business activity and support the finances of the agricultural holding, which is important in preparation for the receipt and export of the 2023 harvest.
“Step by step FUIB continues to build up cooperation with our company. We are grateful to the bank for the timely agreements and are glad to act as a reliable partner,” Irina Ivchenko, Head of Prometey’s Corporate Finance Department, commented on the deal.
Prometey Group provides services in storing, processing and logistics of crops. Before the Russian aggression the holding owned 34 elevators in the regions of Mykolaiv, Kirovograd, Kyiv, Khmelnytsky, Zaporizhzhya, Sumy, Odessa, Kherson and Dnipropetrovsk.
By the end of 2021, the group planned to receive $45 million EBITDA, while in 2020 this figure reached $32.6 million and in 2019 – $30.5 million.
“Prometey” plans to increase the land bank from 20 thousand hectares to 50 thousand hectares in 2023, and in the future to increase it to 100 thousand hectares.

“Brokbusiness” will insure property of “Zaporozhgas” JSC

On June 24 JSC “Operator of gas transmission system “Zaporizhgaz” announced its intention to sign a contract with “Brokbusiness” Insurance Company for voluntary property insurance, according to the system of electronic procurement Prozorro.
The price offer of the company amounted to UAH 73,539 thousand with the expected value of UAH 147 thousand.
In the tender there also took part IC “VUSO” with the offer – 143,4 thsd.UAH.
IC Brokbusiness works in the Ukrainian insurance market for more than 25 years and is presented in all regions of Ukraine.

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National Bank has excluded 10 more non-banking institutions from the registers

The National Bank of Ukraine (NBU) has excluded Elit Leasing LLC and Otokoch Ukraine LLC from the Register of Persons who are not financial institutions but have the right to provide certain financial services due to the revocation of all their licenses, according to the regulator’s website.
Besides, SS LOUN LLC and FC Global Financial Services LLC were excluded from the State register of financial institutions on the basis of their own applications.
From this register in connection with the decision of the National Bank to cancel all existing licenses to provide financial services also excluded CS Garantia LLC, FC Hunter LLC, Royal Capitol LLC, ORO Finance LLC, Invest Solutions Factor LLC, LLC Credit Continental.
The Committee for the supervision and regulation of the non-banking financial services markets adopted such decisions on June 23, 2023.