Poland still attractive for foreign investors

Warsaw, Poland (Kamil Porembiński, CC BY-SA)

Ukraine nationalizes Privatbank and liquidates Artem-Bank

Gazprom increases gas deliveries by 12 per cent

Latvia farmers earned EUR4.6m in 2016

Poland

According to the report prepared by the Polish Information and Foreign Investment Agency (PAIiIZ) and the HSBC bank, a total of 97 per cent of investors who have started their businesses in Poland would do so again. The rating of investment climate improved by 0.02 points over 2016. Foreign investors rate it at 3.72 points out of possible 5 points. The authors of the reports point out that foreign investors complain about:

  • unclear laws;
  • the tax system;

“It seems that the investment climate in the country is improving (…) Poland is a very important regional player when it comes to attracting investors,” PAIiIZ spokesperson Tomasz Pisula commented in the Polish Radio.

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Ukraine

Privatbank, the country’s largest private lender, will be nationalized. According to the Ukrainian government the decision was taken to “save Privatbank and the country’s banking system.” Privatbank is controlled by Ihor Kolomoisky and accounts for around one-third of all deposits in the country, despite concerns that it needs billions in additional capital.

The government revealed that the bank’s owners had requested nationalization. The Wall Street Journal writes that “recapitalizing Privatbank and other large lenders, as well as reducing their lending to shareholders, is part of the USD17.5bn IMF bailout program.” Privatbank capital needs are estimated at UAH148bn (USD5.6bn).

Ukraine has closed several bank in the last two years. In 2016 the NBU has liquidated KSG Bank, Fidobank, Ukrinbank, Standard bank, Khreschatyk bank and more. It has also allowed some institutions for self-liquidation (for e.g. Finexbank). The National Bank of Ukraine (NBU) has recently decided to withdraw the banking license of Artem-Bank (Kyiv).

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and more

Russia-EU

In the period January – December, 2016 Russian Gazprom increased gas deliveries to countries outside the Commonwealth of Independent States by 11.9 per cent, compared to the same period in 2016. It reached 170 billion cubic meters.

Novinite.com reports that in absolute terms, the increase is 18.1 billion cubic meters and is comparable to the quantity of gas exported by Gazprom in 2015 to large consumers such as France and Poland put together.

The portal reminds the absolute record for exports of Russian gas to countries outside CIS set in 2013 (162.7bn cubic meters) has already been exceeded.

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Latvia

Leta agency reports that Latvian farmers have earned EUR4.6m by selling farmland to the Land Fund. The Fund was set up one-and-a-half year ago. Since then, the Latvian state has bought a total of 2,038 hectares of farmland, or 112 properties.

The Land Fund has acquired properties in all regions of Latvia, especially in Zemgale province – 863 hectares, in Vidzeme – 475 hectares, in Riga region – 282 hectares, in Kurzeme – 238 hectares and in Latgale – 180 hectares.

The Land Fund, run by the development finance institution Altum, has also cleaned up seven properties that had been neglected and were unfit for farming, 72 hectares overall, and will soon lease them to farmers. So far, 92 per cent of properties managed by the fund have been leased.

Leta.lv informs that “the Land Fund of Latvia purchases farmland from landowners – individuals and companies. The purchased farmland becomes property of the Land Fund and, in order to preserve and improve the value of the land, it is offered for sale or rent to farmers and businessmen.”

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What’s up in indexes

BUX (of Budapest) increased from 31636.19 index points Thursday, December 15th to 31876.26 index points Friday, December 16th. So it’s up 0.76 per cent d/d and up 33.26 per cent from year-end.

BET (of Bucharest Stock Exchange) was up 0.97 per cent d/d and up 0.92 per cent from-end. It increased from 6988.56 index points Thursday, December 15th to 7066.51 index points Friday, December 16th.

PX (of Prague) increased from 911.98 index points Thursday, December 15th to 917.59 index points Friday, December 16th. So it’s up 0.62 per cent d/d. From year-end it dropped by 4.05 per cent.

WIG20 (of Warsaw) increased from 1911.16 index points Thursday, December 15th to 1918.54 index points Friday, December 16th. So it’s up 0.39 per cent d/d. From year-end it’s up 3.19 per cent.

OMXT (of Tallinn) increased from 1050.35 index points Thursday, December 15th to 1057.64 index points Friday, December 16th. So it’s up 0.69 per cent d/d. From year-end it’s up 17.65 per cent.

OMXR (of Riga) increased from 730.35 index points Thursday, December 15th to 732.84 index points Friday, December 16th. So it’s up 0.34 per cent d/d. From year-end it’s up 23.30 per cent.

OMXV (of Vilnius) dropped by 0.67 per cent d/d – falling from 553.95 index points Thursday, December 15th to 550.22 index points Friday, December 16th. From year-end it’s up 13.22 per cent.

SAX (of Bratislava) decreased from 317.14 index points Thursday, December 15th to 315.34 index points Friday, December 16th. So it dropped by 0.57 per cent d/d. From year-end it’s up 7.86 per cent.

SOFIX (of Sofia) increased from 577.90 index points Thursday, December 15th to 578.45 index points Friday, December 16th. So it’s up 0.10 per cent d/d. From year-end it’s up 25.50 per cent.

UX (of Kyiv) dropped by 0.99 per cent – falling from 770.00 index points Thursday, December 15th to 762.38 index points Friday, December 16th. From year-end it’s up 11.16 per cent.

CROBEX (of Zagreb) was up 0.24 per cent d/d and up 21.79 per cent from year-end. It increased from 1963.53 index points Thursday, December 15th to 1968.33 index points Friday, December 16th.

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