All but Russian Eurobond issues of Ukrainian sovereign debt restructured

Natalie Jaresko, ukrainian Minister of Finance. (CC BY-ND U.S. Embassy Kyiv Ukraine)

Private funding of Estonian political parties.

Valuables of Latvia.

The unemployment falls in Bulgaria.

Ukraine

After Ukraine called on its creditor to accept the general restructuring terms, the meetings were held in London on October 14th. The holders of 13 out of the 14 issues of sovereign Eurobonds totaled USD14,36bn and EUR0,6bn guaranteed by the Ukrainian state decided to support the restructuring plan of the country. Only creditors from Russia were absent. Their Eurobonds are worth USD3bn. Ukraine asked Russia again to participate in the meeting on October 29th. As the PM Arseniy Yatseniuk and FM Natalie Jaresko claim, more than 75 per cent of creditors that were present accepted the terms of debt restructuring (and partially writing off). The creditors who refuse to agree on the government proposals will „loose the right to receive state derivatives payments tied to the dynamics of Ukraine’s GDP”. Bond-replacements will be issued in the middle of November 2015, after the second-chance meeting on Russian Eurobonds scheduled October 29th.

On August 27th Ukraine informed about reaching the consensus on restructuring country’s foreign commercial debt of approx. USD19.3bn after negotiating with commercial creditors. The agreement assumed an immediate write-off of 20 per cent of Ukraine’s principal debt and postponing the other repayments to 2019-2027. In connection with that nine new issues of dollar-denominated Eurobonds are to be conducted (with an average coupon rate of 7.22 per cent).

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Estonia

Behind the curtain of the scandal in Latvian Port of Tallinn and the scandal connected to Edgar Savisaar, the Mayor of Tallinn, there is an issue of financing political parties. Postimees reports that Hillar Teder, a well-known Estonian entrepreneur, was a major donor of all the political parties of Riigikogu between 2012 and 2015. “What would be even a slightly rational reason for (…) Teder (…) to have so generously supported the three coalition parties in these three years?” – journalists ask. The newspaper publishes the amounts of money transferred from Teder and his company (and other donors) to: Reform, IRL and Social Democratic Party (SDE). In 2015 it was EUR150K (EUR100K to Reform, EUR15K to SDE, EUR35K to IRL), in 2014 it was: EUR350K (EUR250K to Reform, EUR20K to SDE, EUR80K to IRL) and in 2013: EUR353K (EUR250K to Reform and EUR103K to IRL).

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Latvia

TOP101 – a 10th ranking of the most valuable companies (conducted by Prudential and Nasdaq Riga stock exchange) was published on October 14th. The most valuable company in Latvia is Latvenergo – the joint-stock power utility. The other is Swedbank. The third: Latvijas Valsts mezi – the joint-stock forestry company. The one with fastest-growing value is Olainfarm (which is also ranked 10th in the main ranking). The total value of companies included in the TOP101 ranking has increased 10.8 percent from 2014.

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Romania

The Romanian unit of Hungarian giant MOL total investments in 2015 will amount to approx. EUR20m. That includes investments in network development, logistics projects and B2B services. Its retail network would add 12 new gas stations. The investment budget also includes EUR5m for rebranding the gas stations as an element of the acquisition of ENI Romania. In the first half of 2015 MOL Romania’s retail sales volume grew by 13 per cent y/y. In 2014 it opened 12 new gas stations. The investment amounted to EUR11m.

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Bulgaria

The Bulgarian Employment Agency has just informed that the unemployment rate in Bulgaria in September 2015 was 9.2 per cent. It’s a drop by 0.1 per cent compared with the previous month and a decrease of 1.3 per cent y/y. A total of 302,775 people were registered as unemployed in September. It means that in August 2015 there were 4046 more unemployed persons and in September 2014 the number was 345,375. 
The number of youth unemployment (under the age of 29) is 46,197. That is 15.3 per cent of all unemployed population. And the number drops. In August there were 45,554 of them while in September 2014 there were 33,043 of them.

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What’s up in indexes

Only four (of ten) indexes grew on Thursday, October 15th. WSE (the stock of Warsaw) was the leader. Also BUX, OMXR and SOFIX grew a bit.

BUX index (of the Budapest Stock Exchange) was up 0.53 per cent on Thursday, October 15th. It reached 22,007.07 index points while the day before it was 21,890.82 index points From year-end it’s up 32.30 per cent.

BET (of Bucharest) dropped by 0.16 per cent to 7,087.97 index points (compared with Wednesday’s 7,099.63 index points). From year-end it’s up 0.07 per cent.

After Wednesday’s decrease PX (of Prague) dropped again, this time by 0.19 per cent. (with 964.21 index points compared with 966.06 index points). From year-end it’s up 1.85 per cent.

WIG20 (of Warsaw) grew by 0.82 per cent. On Thursday it was 2,136.42 index points while the day before it was 2,118.97 index points. From year-end it dropped by 7.75 per cent.

OMXT (of Tallinn) decreased to 862.48 index points from the level of 863.11 index points on Wednesday. It’s a drop of 0.07 per cent. But from year-end the index is up 14.23 per cent.

This time OMXR (of Riga) fell by 0.51 per cent (from 445.49 on Wednesday to 553.63 on Thursday). From year-end it’s up 35.68 per cent.

OMXV (of Vilnius) was up 0.35 per cent climbing from 480.70  from 480.19 index points on Wednesday to 482.38 index points on Thursday. From year-end it’s up 6.62 per cent.

SAX (of Bratislava) decreased slightly to 277.49 index points (from the level of 278.00 index points the day before). That means it dropped by 0.18 per cent. But its growth from year-end is really impressive. It’s up 24.82 per cent.

SOFIX (of Sofia) ended up 0.02 per cent with 439.94 index points (compared with Wednesday’s 439.84 index points.) From year-end it dropped by 15.74 per cent.

UX (of Kyiv) dropped by 0.91 per cent, decreasing to 836.57 index points. From year-end it dropped by 19.04 per cent.

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