Dynamics of balance of payments of Ukraine in 2020-2022 (USD mln)
NBU
The government of Ukraine intends to extend the maturity of all Eurobonds by 24 months, as well as to defer the payment of interest income on them for the same period, the relevant Cabinet of Ministers Resolution No. 805 of July 19 was published on its website on Wednesday.
“Transactions with public debt in 2022 are carried out until August 15, 2022 by entering into the terms of the bond issue … in agreement with the bond holders …”, the document says.
According to it, “the maturity date of each bond (and for 2017 bonds ⸺ each maturity date of a portion of the 2017 bonds) is deferred for a period of 24 months from the respective final maturity date of the bonds.”
“All interest payment dates on post-deal bonds are deferred for a period of 24 months from each relevant interest payment date (and for 2018 Series 1 bonds ⸺ all interest payment dates on these bonds are deferred for a period from August 1, 2022 d.),” the resolution reads.
During these 24 months, interest income on the bonds continues to accrue at existing rates, and additional interest income is accrued on the amount of accrued basic interest income at the same rates.
“At any time during the specified delay, the total amount of accrued basic interest income and additional interest income (the amount of income of holders) on the basis of a separate decision of the Cabinet of Ministers of Ukraine may be paid to bondholders in part (or) in full,” the document says.
Likewise, at the end of the said deferral, the unpaid amount of the holders’ income at that time may be paid to the holders in full or by additional issue of the relevant bonds.
“The amount of income of holders is calculated by the Ministry of Finance, taking into account, in particular, information provided by business entities engaged by the Ministry of Finance to provide agency, advisory or other services in connection with transactions, and cannot exceed $ 3,000 million (together for all bonds paid in dollars USA) and 300 million euros (jointly for all paid in euros),” the resolution says.
The Cabinet of Ministers intends to limit payments to members of supervisory councils and management of state-owned companies and state-owned banks to 15 minimum wages (MW) for the period of martial law, based on the size of the minimum wage set as of January 1, 2022 (15 MMW is equivalent to UAH 97.5 thousand), said the deputy head of the parliamentary committee on finance, tax and customs policy, Yaroslav Zheleznyak.
“The Cabinet of Ministers wants to limit payments to members of supervisory boards during the war. The corresponding draft decision was sent yesterday from the Ministry of Economy to the Cabinet of Ministers. It also concerns the management of state-owned companies,” Zheleznyak wrote on his Telegram channel on Tuesday.
Insurance companies of Ukraine in 2021 collected net premiums in the amount of UAH 45.987 billion, which is 14% more than in 2020 (UAH 40.350 billion), the National Bank of Ukraine reported on its website.
According to the regulator, the volume of gross insurance premiums collected by insurers last year amounted to UAH 49.708 billion, which is 10% more than a year earlier (UAH 45.185 billion). Of these, receipts from individuals amounted to UAH 27.912 billion, from reinsurers – UAH 1.890 billion (in 2020 – UAH 4.201 billion).
In addition, according to the regulator, in 2021, Ukrainian insurers paid UAH 17.671 billion of net insurance payments (+22.3% by 2020). The level of net payments increased to 38.4% from 35.8%.
According to the NBU, gross insurance payments increased by 20.9% to UAH 17.958 billion. The level of gross payments increased to 36.1% from 31.9%
According to the regulator, the volume of insurance payments owned by reinsurers in 2021 amounted to UAH 8.623 billion (+1.6%), of which non-resident reinsurers – UAH 4.9023.652 billion (+34.3%).
The regulator also reports that last year the volume of formed insurance reserves increased by 7.2% – up to UAH 36.566 billion. At the same time, with a decrease in the total assets of insurers by 1.1%, to UAH 64.209 billion, the volume of assets determined by law to represent insurance reserves increased by 2.3% compared to 2020, to UAH 47.159 billion. The volume of paid authorized capital decreased by 18.7% – to UAH 7.924 billion.
The regulator also reports that in 2021, 131.562 million contracts were concluded, while a year earlier, 120.586 million insurance contracts were concluded.
According to the NBU, the total number of insurance companies in Ukraine as of December 31, 2021 was 155, while on the same date a year earlier it was 208.
PZU Ukraine Insurance Company (Kyiv) collected UAH 300.729 million in gross premiums in January-March 2022, which is 12.71% less than in the same period of 2021, Standard-Rating RA reports. , updating the company’s credit/financial stability (reliability) rating on the national scale at the level of “uaААА” based on the results of the specified period.
According to him, income from individuals of the insurer remained almost at the same level (increased by only UAH 12 thousand to UAH 208.440 million), and from reinsurers decreased by 26.55%, to UAH 6.405 million. Thus, the share of individuals in the gross premiums of the insurer increased by 8.81 percentage points to 69.31%, while the share of reinsurers decreased to 2.13%.
Insurance payments sent to reinsurers for the first quarter of 2022 compared to the same period in 2021 decreased by 50.26%, to UAH 71.651 million. Thus, the coefficient of participation of reinsurance companies in insurance premiums decreased by 17.98 percentage points, to 23.83%.
The insurer’s net premiums increased by 14.28% to UAH 229.078 million, while earned insurance premiums increased by 34.89% to UAH 272.931 million.
During the reporting period, the company paid out UAH 183.737 million to its customers, which is 32.95% higher than the volume of insurance payments and indemnities made in the same period a year earlier. Thus, the level of payments increased from 40.12% to 61.1%, or by 20.98 percentage points.
According to the results of January-March of this year, IC “PZU Ukraine” received a net profit of UAH 25.352 million, which is 3.42 times higher than in the first quarter of last year.
As of March 31, 2022, the company’s assets decreased by 6.32%, to UAH 2.670 billion, equity increased by 0.49%, to UAH 829.536 million, liabilities decreased by 9.10%, to UAH 1.841 billion, cash and their equivalents increased by 154.96% to UAH 278.220 million.
Thus, as of the beginning of the second quarter of 2022, the company had a sufficient level of capitalization (45.06%), and 15.11% of its liabilities were covered by cash. At the same time, as of the reporting date, the company made financial investments in the amount of UAH 383.148 million, consisting of government bonds (73.01% of the investment portfolio) and deposits in banks with an investment grade credit rating (26.99% of the portfolio), which had a positive effect on its provision with liquid assets, the agency notes.
According to the report, IC PZU Ukraine has the support of one of the largest insurance groups in Central and Eastern Europe – PZU Group (which includes the parent company PZU PZU Ukraine – PZU S.A.).
Dynamics of balance of payments of Ukraine (USD mln)
NBU
