Business news from Ukraine

NBU INTRODUCES NEW COINS

The National Bank of Ukraine (NBU) from April 27, 2018 introduced UAH 1 and UAH 2 coins, the central bank has said on its website.
The NBU said that these coins will be in circulation jointly with the old UAH 1 coin and UAH 1 and UAH 2 banknotes.
“Ukrainian will be able to pay using the new coins synchronously with the UAH 1 and UAH 2 banknotes for the unlimited period of time. The NBU will not remove UAH 1 and UAH 2 banknotes from circulation, and eventually the coins would fully replace the damaged and worn down banknotes,” Director of the money circulation department at the NBU Viktor Zaivenko said.
As reported, the NBU intends to stop printing UAH 1, UAH 2, UAH 5, UAH 10 banknotes and replace them with coins.
The NBU said that that UAH 1 and UAH 2 coins will be put into circulation on April 27, 2018, UAH 5 and 10 UAH coins will be introduced under a separate decision of the NBU.
The first issue of UAH 1 and 2 coins will be 5 million pieces of each denomination. They will be put into the market along with the withdrawal of the worn-out banknotes of the corresponding denominations.

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NBU ESTIMATES UKRAINE’S GDP GROWTH AT 2.3% IN Q1 2018

The growth of real GDP of Ukraine in the first quarter of 2018 in annual terms (quarter-over-quarter) was 2.3%, according to the assessments of the National Bank of Ukraine (NBU). The growth was thanks to the further increase in population income and retaining the favorable situation on foreign markets.
“An additional factor was the reduction in the comparison base of last year under the influence of the trade blockade of uncontrolled areas last year, the full effect from which is expected from the second quarter,” the central bank said in its inflation report released on Friday night.
At the same time, the NBU points out that the worsening of weather conditions at the end of February and in March somewhat inhibited the revival of economic activity, particularly in transport and construction.
According to the central bank, domestic demand remained the main factor of economic growth. Private consumption supported further increases in salaries and social standards, including an increase in pensions at the end of last year and a minimum wage from the beginning of 2018, as well as improving consumer expectations of households.
“The acceleration in the growth of production of machine-building products, in particular automobile and railway, was the indicator of the further growth,” the NBU said.
The central bank said that in January-February 2018, exports continued to grow, mainly thanks to the increase in the supply of some food products, wood and products made from it, as well as ferrous metals. At the same time, consumer imports were growing at a rapid pace, contributing to the change in GDP.

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NATIONAL BANK EXPECTS UKRAINE TO PLACE $2.5 BLN IN EUROBONDS IN 2018 AND $1.5 BLN IN 2019

The National Bank of Ukraine (NBU) expects the country’s Finance Ministry will place $2.5 billion in eurobonds in 2018, $1.5 billion in eurobonds in 2019. “In 2018 and 2019, we expect that eurobonds worth $4 billion will be placed: $2.5 billion this year and $1.5 billion next year,” Deputy NBU Governor Dmytro Solohub said at a briefing in Kyiv on Thursday.

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