Business news from Ukraine

BANK CREDIT DNIPRO PLANS TO BUY ANOTHER BANK

Bank Credit Dnipro intends to acquire the First Investment Bank (PINbank, Kyiv), owned by Russian citizen Yevgeny Giner (88.89% of shares), the press service of the Antimonopoly Committee of Ukraine said on Monday. “By order of the state commissioner No. 09/334-r dated November 23, 2021, case No. 130-25 / 3-20-EK was initiated on concentration in the form of acquisition of the First Investment Bank by Bank Credit Dnipro, which grants that 50% of the votes in the supreme management body of the bank are exceeded,” the committee said.According to the National Bank of Ukraine (NBU), as of June 25, 2021, the shareholders of PINbank were also Oleksandr Shandruk with a 9.51% stake.Bank Credit Dnipro was founded in 1993. As of January 1, 2021, according to the National Bank of Ukraine, the only shareholder of the bank was Oleksandr Yaroslavsky.According to the NBU, as of October 1, 2021, Bank Credit Dnipro was ranked 19th in terms of total assets (UAH 19.781 billion) and PINbank 44th (UAH 3.698 billion) among 71 operating banks.

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UKRAINE MIGHT PROHIBIT COMPANIES OF EX-OWNERS OF BANKRUPTED BANKS TO PARTICIPATE IN PUBLIC PROCUREMENT – IMF MEMORANDUM

Ukraine intends to prohibit former owners of failed banks from participating in public procurement and privatization until they take measures to pay off their debts to the Deposit Guarantee Fund, according to a memorandum signed between Ukraine and the International Monetary Fund (IMF).”We will specifically enumerate measures that can be taken to end the state’s business-as-usual with former owners of failed banks until the latter have taken actions to satisfy their debts to the Deposit Guarantee Fund, for example, by prohibiting former bank owners of resolved banks, their related parties, and entities controlled by them, with legally ascertained debts to the Deposit Guarantee Fund, from participating in public procurement and privatization processes,” the document said.According to it, Ukraine is stepping up its efforts to boost asset recovery from the former owners and related parties of failed banks to reduce the cost of bank failures to Ukrainian taxpayers.”We recognize the need to take a more comprehensive approach to pursue all commercial and legal avenues available to recover assets from failed banks and hold former owners and former managers of failed banks accountable for losses. This comprehensive approach would demonstrate a strong political commitment and provide a consolidated view on Ukraine’s asset recovery strategy, on policy measures that will fix institutional, legal and coordination gaps forestalling recoveries with due attention,” the memorandum said.In addition, it undertakes to ensure the impossibility of interfering with the work on the return of PrivatBank’s assets.The new structural benchmark is to prepare a comprehensive asset recovery strategy paper and action plan, which will be adopted and published by the Cabinet of Ministers by end-February 2022.

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US EXIMBANK TENTATIVELY AGREES ON AMOUNT OF FINANCING FOR CONSTRUCTION OF TWO POWER UNITS AT KHNPP – ENERGOATOM HEAD

US Eximbank has tentatively agreed on the total amount of financing for construction of two new power units using AP1000 technology of the American company Westinghouse, further negotiations are underway, Head of Energoatom Petro Kotin has said.”Financing is provided through the US Eximbank. The total amount of financing for two power units has been preliminary agreed, but there is still a long procedure to make a final decision in order to receive this money,” Kotin said at a briefing at the international conference Atomic Opportunities for National Development, held in Kyiv on Monday.At the same time, he specified that “both the American and Ukrainian shares are being financed.” At the same time, he did not name the amount of funding.In the Energoatom’s presentation on nuclear power development, presented at the conference, the amount of construction of one power unit is indicated approximately in the range of $5 billion.At the same time, Energy Minister Herman Haluschenko noted that conditions for provision of financing that are favorable for Ukraine, are being considered.”I would not like to specify anything before making a final decision, but I will say: we are talking about the use of funds for 18 years at very low interest rates,” he said, adding that “now we are talking about the first tranche of financing for two units.”As reported, Westinghouse (USA) and Energoatom signed two cooperation agreements providing for the start of projects for construction of two new power units at Khmelnytsky nuclear power plant (KhNPP) using AP1000 technology.As part of the September visit of the President of Ukraine to the United States, Energoatom and Westinghouse Electric signed a memorandum on construction of five nuclear power units in Ukraine. The cost of the project will be about $25 billion.

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QUOTES OF INTERBANK CURRENCY MARKET OF UKRAINE (UAH FOR $1, IN 01.10.2021-39.10.2021)

Quotes of interbank currency market of Ukraine (UAH for $1, in 01.10.2021-39.10.2021)

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NUMBER OF UKRAINIANS’ COMPLAINTS TO NATIONAL BANK OF UKRAINE IN JULY-SEPT AMOUNTED TO 29,000

The number of citizens’ complaints to the National Bank of Ukraine (NBU) in July-September 2021 amounted to 29,000, which is 13.7% more than in the previous quarter (25,500), according to a report on work with complaints from consumers of financial services, published on the regulator’s website on Wednesday. At the same time, number of written complaints in the third quarter increased by 18%, to 11,340, and the number of calls to the call center – by 10%, to 17,400.Most of the complaints from consumers relate to the work of nonbank financial institutions: 8,720 written complaints and 5,750 calls to the call center.One of the main reasons for the growth in the number of applications is Law No. 1349-IX on the regulation of collection activities, which came into full force on July 14, 2021.“It clearly outlined the rights of consumers of financial services and bans on the work of debt collectors. That is why citizens began to complain more often to the National Bank about the violation by debt collectors and lenders when settling overdue debts,” the central bank said.According to the report, debt management and unethical behavior of debt collectors and credit institutions is the most common topic of both written complaints (47% of the total) and calls to the call center (19%).In addition, in their written requests, consumers asked questions about loans from nonbank financial institutions (23%), relations on compulsory types of insurance (8%), bank loans (7%).At the same time, the topical topics of calls to the call center were loans from nonbank financial institutions (14%), issues of banknotes and coins (11%), relations under bank loan agreements (7%).According to the NBU, 45% of written requests had signs of violation of the rights of consumers of financial services.Among the problematic issues in the work of nonbank financial institutions is the accrual of interest over the loan period, fraud using lost consumer documents, problematic issues with insurance companies, tough methods of collecting bad debts.Among the problematic issues identified in the work of banks are also cases of fraud with customer accounts, the imposition of additional services, tough actions to collect bad debts.

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UKRAINIAN STATE-OWNED BANK OFFERS CLIENTS TO INVEST IN CORPORATE EUROBONDS

State-owned Ukreximbank (Kyiv) has expanded the list of securities for investment, and offers its clients corporate eurobonds placed on international stock markets and admitted to circulation on Ukrainian stock exchanges.According to the financial institution, in addition to sovereign eurobonds at the request of clients, Ukreximbank carries out operations with eurobonds of Ukrainian companies Naftogaz Ukrainy, Metinvest, Kernel Holding, MHP SE, and DTEK Renewables.In addition, clients can purchase eurobonds of Ukrainian Railway (Ukrzaliznytsia), Vodafone Ukraine, Ukravtodor, Oschadbank, Ukreximbank. In the future, the bank plans to expand the list of investment services and provide access to trading in shares of foreign companies, the press release says.“Among the first transactions, a significant one is the acquisition by our client […] of corporate eurobonds of Ukreximbank. We value the trust of our clients and are glad that now, among the instruments for placing funds, we can offer, among other things, investments in debt instruments of international capital markets,” member of the bank’s board Mykhailo Medko said.Ukreximbank was founded in 1992, its sole owner is the state. According to the National Bank of Ukraine, as of September 1, 2021, Ukreximbank ranked third in terms of total assets (UAH 241.973 billion) among 72 banks operating in the country.

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