IMF leaves Ukraine without a new deal

(World Bank Photo Collection, CC BY-NC-ND)

Hungarian PM: Protecting economy top task in 2020

Croatia may enter ERM II in H2'20

Ukraine

The International Monetary Fund (IMF) team left Kyiv without reaching an agreement on a new program, although the Ukrainian Prime Minister Oleksiy Honcharuk said significant progress has been made and the two sides are close to an agreement, Intrefax news agency informed. This was the second trip of the IMF team following the election of Ukrainian President Volodymyr Zelenskiy in April.

Despite hopes for a quick deal that would upgrade Ukraine from a Stand-by Arrangement to the more extensive and longer term Extended Fund Facility. The government and the central bank hoped for USD5bn-6bn over three years.

According to Bloomberg IMF’s obstacles to a new loan have included attacks on an ex-central bank governor and uncertainty over the country’s biggest lender, Privatbank. The bank’s 2016 nationalization is being challenged by its former owners, which include a billionaire Ihor Kolomoysky, former business partner of Ukraine’s President Volodymyr Zelenskiy.

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Hungary

Hungarian PM Viktor Orbán announced that protecting Hungarian economic achievements would be the major task in 2020. He added that it would be an uphill struggle to sustain economic growth with the Eurozone in turmoil. “The government’s economic action plan for the Q1’20 hopefully will be based on tax cuts”, Mr. Orbán stressed.

“Whether Hungary and other CSE countries are able to stand on their own feet and outperform richer countries will transpire next year,” Hungarian PM said in the interview and added that Hungary’s economic successes of recent years had been due to tax cuts, helping the country boost production and its competitiveness, and the exponential growth of wages.

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Croatia

Croatia could enter the European Exchange Rate Mechanism (ERM II) in the H2’20, according to the European Commissioner for the Euro and Social Dialogue Valdis Dombrovskis, HINA news agency reported. Mr. Dombrovskis stated that entry into the Eurozone was a huge challenge for Croatia but that these efforts would pay off in terms of greater stability, opportunities and prosperity.

Croatia needs to fulfill 19 measures in six various areas which it undertook to do in a letter of intent for membership of ERM II and the banking union. The measures are related to strengthening the capacity of the national statistics office, improving the business environment, state assets management and strengthening foundations for economic growth, HINA informed.

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What’s up in indexes

BET (of Bucharest) increased from 9722.58 index points Thursday, November 21st to 9718.49 index points Friday, November 22nd. It’s up 0.02 per cent d/d and up 14.1 per cent y/y.

BUX (of Budapest) increased from 43654.00 index points Thursday, November 21st to 44053.95 index points Friday, November 22nd. It’s up 0.92 per cent d/d and up 11.6 per cent y/y.

OMXR (of Riga) decreased from 1033.63 index points Thursday, November 21st to 1033.38 index points Friday, November 22nd. It’s down 0.02 per cent d/d and up 8.38 per cent y/y.

OMXT (of Tallinn) decreased from 1266.08 index points Thursday, November 21st to 1262.33 index points Friday, November 22nd. It’s down 0.30 per cent d/d and up 5.63 per cent y/y.

OMXV (of Vilnius) decreased from 711.17 index points Thursday, November 21st to 710.13 index points Friday, November 22nd. It’s down 0.15 per cent d/d and up 12.1 per cent y/y.

PX (of Prague) increased from 1073.69 index points Thursday, November 21st to 1081.90 index points Friday, November 22nd. It’s up 0.76 per cent d/d and up 1.53 per cent y/y.

RTS (of Moscow) increased from 1454.74 index points Thursday, November 21st to 1455.42 index points Friday, November 22nd. It’s up 0.05 per cent d/d and up 27.9 per cent y/y.

SAX (of Bratislava) decreased from 342.55 index points Thursday, November 21st to 342.13 index points Friday, November 22nd. It’s down 0.12 per cent d/d and up 3.36 per cent y/y.

SOFIX (of Sofia) increased from 550.00 index points Thursday, November 21st to 551.22 index points Friday, November 22nd. It’s up 0.22 per cent d/d and down 6.23 per cent y/y.

UX (of Kyiv) decreased from 1516.28 index points Thursday, November 21st to 1508.25 index points Friday, November 22nd. It’s down 0.53 per cent d/d and down 14.56 per cent y/y.

WIG20 (of Warsaw) increased from 2179.53 index points Thursday, November 21st to 2188.24 index points Friday, November 22nd. It’s up 0.40 per cent d/d and down 2.15 per cent y/y.

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