Moldova to get EUR92m for the construction of Ungheni-Chisinau gas pipeline

Tiraspol, Moldova (Clay Gilliland, CC BY-SA)

The International Monetary Fund praises nationalization of PrivatBank

Jaguar to develop transport infrastructure in Slovakia

Moldova

Moldova will get a funding package of EUR92m from the European Union (EU), European Bank for Reconstruction and Development (EBRD) and European Investment Bank (EIB). The funds will be forwarded to the state-owned Vestmoldtransgaz that will construct the Ungheni – Chisinau gas pipeline and will be operating an interconnector between Romania and Moldova.

The Moldpres informs “the EIB and EBRD will grant a loan of EUR41m each and EU – a grant of EUR10m. Loan agreements were signed in Chisinau by Deputy Prime Minister Octavian Calmic, Minister of Economy of the Republic of Moldova, and Dimitri Gvindadze, EBRD Head of Office, and Jan Vapaavuori, EIB Vice-President.”

Mr. Calmic said the project was very important for Moldova because it “represented an important step in the implementation of projects ensuring energy security of the state”.

The pipeline will connect gas transportation systems from Romania, as a continuity of the first part of lasi-Ungheni connection put into operation in 2014. The first phase was co-funded by the EU with the value of EUR7m.

Moldova is one of the countries that benefited the most from the EIB loans in the Eastern Partnership region. The EIB loan portfolio covers all major sectors of Moldavian economy, reaching EUR700m. The EBRD is the largest institutional investor in Moldova, with over EUR1.1bn cumulative investments in over 110 projects.

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Ukraine

Christine Lagarde, Managing Director of the International Monetary Fund (IMF), has welcomed the decision of the Ukrainian government and the National Bank of Ukraine on the nationalization of PrivatBank, the Interfax informs.

Ukrainian government decided to acquire 100 per cent of the bank’s capital, while the issue of government domestic loan bonds for this purpose is estimated at UAH116.8-148bn (EUR42bn – EUR5.3bn).

The agency quotes Mrs. Lagarde: “Decision of Ukrainian authorities to nationalize PrivatBank is an important step in their efforts to safeguard financial stability. This decision was taken to ensure the smooth operations of the bank given its systemic role in Ukraine’s financial system, and in view of insufficient efforts to strengthen its capital adequacy in recent months”.

PrivatBank is largest bank in Ukraine.

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Slovakia

The carmaker Jaguar Land Rover wants to invest in a network of sub-contractors and transport infrastructure in Slovakia. The Slovak Spectator reports Jaguar is in talks with the freight carrier Cargo Slovakia on importing components for car production to its new factory in Slovakia, with the outlook of subsequently exporting the completed vehicles to Belgian ports.

The Slovak Spectator comments: “It means the freight carrier Cargo Slovakia can significantly reduce its current dependence on metallurgy” and adds that the negotiations between Cargo and the car producer came amidst speculations about the sale of U.S. Steel Košice by the US corporation. (The Košice steelworks alone make up about one-third of Cargo’s total transport performance).

Jaguar Land Rover is the fourth biggest carmaker in Slovakia. In September 2016 it started constructing its plant near Nitra.

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What’s up in indexes

BUX (of Budapest) dropped by 0.72 per cent – falling from 31876.26 index points Friday, December 16th to 31646.38 index points Monday, December 19th. From year-end it’s up 32.30 per cent.

BET (of Bucharest Stock Exchange) decreased from 7066.51 index points Friday, December 16th to 7059.75 index points Monday, December 19th. So it dropped by 0.10 per cent d/d. From year-end it’s up 0.82 per cent.

PX (of Prague) dropped by 0.56 per cent d/d and by 4.59 per cent from year-end. It decreased from 917.59 index points Friday, December 16th to 912.46 index points Monday, December 19th.

WIG20 (of Warsaw) increased from 1918.54 index points Friday, December 16th to 1924.67 index points Monday, December 19th. So it’s up 0.32 per cent d/d. From year-end it’s up 3.52 per cent.

OMXT (of Tallinn) increased from 1057.64 index points Friday, December 16th to 1057.76 index points Monday, December 19th. So it’s up 0.01 per cent d/d. From year-end it’s up 17.66 per cent.

OMXR (of Riga) increased from 732.84 index points Friday, December 16th to 734.25 index points Monday, December 19th. So it’s up 0.19 per cent d/d. From year-end it’s up 23.54 per cent.

OMXV (of Vilnius) increased from 550.22 index points Friday, December 16th to 553.13 index points Monday, December 19th. It’s up 0.53 per cent d/d and up 13.82 per cent from year-end.

SAX (of Bratislava) was up 0.86 per cent d/d and up 8.79 from year-end. It increased from 315.34 index points Friday, December 16th to 318.04 index points Monday, December 19th.

SOFIX (of Sofia) decreased from 578.45 index points Friday, December 16th to 575.45 index points Monday, December 19th. So it dropped by 0.52 per cent d/d. From year-end it’s up 24.85 per cent.

UX (of Kyiv) increased from 762.38 index points Friday, December 16th to 763.43 index points Monday, December 19th. So it’s up 0.14 per cent d/d. From year-end it’s up 11.31 per cent.

CROBEX (of Zagreb) dropped by 0.06 per cent – falling from 1968.33 index points Friday, December 16th to 1967.12 index points Monday, December 19th. From year-end it’s up 16.42 per cent.

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