National Bank of Ukraine: difficulties with paying foreign debt

Headquarters of NBU, Kiev, Ukraine (National Bank Of Ukraine, CC BY-NC-ND)

In Q3’17 Moldovans sent back home EUR135m

Latvia: quarrels over the merger of telecom operators

Ukraine

The Interfax quotes Dmytro Solohub, the deputy Governor of the National Bank of Ukraine (NBU), who said that Ukraine’s cooperation with the International Monetary Fund (IMF) and “other financial donors” was “extremely important”. Solohub explains that although Ukraine entered foreign debt market, its difficulties with paying foreign debt in 2019 and 2020 are obvious.

“The coming payments on foreign debt in 2019 and 2020 are large and hard to implement without support of the IMF and other financial donors,” Solohub said.

In May 2017 the international rating agency S&P informed that – according to its estimates – that the large principal and interest repayments coming due over 2017-2020 will reach USD20bn (of about 21 per cent of Ukraine’s GDP). The agency projected that debt repayments in 2019 – reaching USD7.5bn – will remain dependent on the government’s cooperation with the IMF.

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Moldova

Moldovans working abroad started sending back home more euros than rubles – the Balkan Insight informs. As reported, in Q3’17 they send EUR135m and only RUB27.13m. The data comes from the country’s central bank.

There about 800,000 to 1 million Moldovan citizens living and working abroad. Historically, they were mostly working in Russia, but now half of them live in the European Union.

Since 2013, when Russia has imposed an embargo on Moldova, 65 per cent of the country’s exports go to European markets.

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Latvia

The telecommunications companies operating in Latvia: Latvijas Mobilais Telefons (LMT) and Lattelecom plan to merge. As reported, Latvian government wants to start talks on the proposed merger. The information was confirmed by Economics Minister Arvils Aseradens.

The National Alliance opposes the idea and informed it won’t support the merger. Roberts Zile, a member of the National Alliance does not agree with Economics Minister. The party informed that it will “take a very responsible approach to the merger proposal, taking into consideration the national interest”.

49 per cent stake of LMT belongs to Sonera Holding and Telia Company (both are units of Scandinavia’s Telia Group). 28 per cent stake of LMT belongs to Latvian Radio and Television Center and Latvian Privatization Agency. Lattelecom, which belongs to Telia (the company Tilts Communications, 51 per cent of Lattelecom shares) and the state to Latvia (Latvian Privatization Agency, 49 per cent stake) owns 23 per cent stake of LMT.

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What’s up in indexes

BET (of Bucharest) increased from 7,748.23 index points Friday, November 3rd to 7,784.05 index point Monday, November 6th. It’s up 0.56 per cent d/d and up 14.10 per cent y/y.

BUX (of Budapest) increased from 39,762.67 index points Friday, November 3rd to 40,115.77 index points Monday, November 6th. It’s up 0.89 per cent d/d and up 32.16 per cent y/y.

CROBEX (of Zagreb) decreased from 1,841.12 index points Friday, November 3rd to 1,815.70 index points Monday, November 6th. It’s down 1.38 per cent and down 5.44 per cent y/y.

OMXR (of Riga) increased from 1,024.34 index points Friday, November 3rd to 1,024.68 index points Monday, November 6th. It’s up 0.03 per cent d/d and up 44.26 per cent y/y.

OMXT (of Tallinn) increased from 1,223.43 index points Friday, November 3rd to 1,225.11 index points Monday, November 6th. It’s up 0.14 per cent d/d and up 20.57 per cent y/y.

OMXV (of Vilnius) decreased from 665.57 index points Thursday, November 2nd to 665.25 index points Friday, November 3rd. It’s down 0.05 per cent d/d and up 19.84 per cent y/y.

PX (of Prague) decreased from 1,051.60 index points Friday, November 3rd to 662.32 index points Monday, November 6th. It’s down 0.44 per cent d/d and up 19.14 per cent y/y.

SAX (of Bratislava) increased from 318.60 index points Friday, November 3rd to 322.01 index points Monday, November 6th. It’s up 1.07 per cent d/d and up 1.56 per cent y/y.

SOFIX (of Sofia) decreased from 675.28 index points Friday, November 3rd to 672.79 index points Monday, November 6th. It’s down 0.37 per cent d/d and up 22.04 per cent y/y.

UX (of Kyiv) decreased from 1,255.34 index points Friday, November 3rd to 1,246.39 index points Monday, November 6th. It’s down 0.71 per cent d/d and up 49.37 per cent y/y.

WIG20 (of Warsaw) increased from 2,494.52 index points Friday, November 3rd to 2,515.34 index points Monday, November 6th. It’s up 0.83 per cent d/d and up 42.77 per cent y/y.

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