Ukraine’s central bank: NPLs and state involvement in banks is risky

PrivatBank, Kiev, Ukraine (TheLotCarmen, CC BY-SA)

Estonia allocates EUR20m for environmental projects

The lowest level of unemployment in Slovakia

Ukraine

National Bank of Ukraine (NBU) informed that the main systemic risks in an Ukrainian financial sector are the large share of the state in the banking sector and the level of non-performing loans (NPL).

Interfax revealed details of NBU’s report. As reported the share of the state in Ukrainian banking sector has reached 56 per cent in net assets and 62 per cent in deposits. NBU claims “the nationalization of PrivatBank has resolved the systemic problem, but it has created a long-term challenge (…) as in the past year there was almost no progress in reforming state-owned banks, and strategic principles approved by the government are not executed”.

Also the share of NPL is something to worry about. In April 2017 it reached 57 per cent. The central bank recommends “servicing of most of these loans would never be restored, and it is better to reserve funds for them and waive”.

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Estonia

The supervisory board of the Estonian Environmental Investment Centre (EIC) decided to spend EUR20m to finance environmental projects in ten different fields of activity, such as water management (75 per cent of the funds), an environmental awareness and waste management. Out of 845 projects 816 projects met valid requirements.

Founded in May 2000, the EIC funds various environmental projects from funding gathered from Estonia’s environmental charges, income from carbon dioxide quota sales, as well as from EU Structural Funds.

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Slovakia

The huge demand for labor decreased the level of unemployment, and it’s the lowest ever percentage. The registered unemployment rate is close to 7.36 per cent.

Slovak Spectator reports that in May 2017 the unemployment rate fell by 0.39 percentage points m/m and by 2.1 percentage points y/y.

The portal quotes Prime Minister Robert Fico, saying: “in the history of the independent Slovakia [since 1992] unemployment has never been lower than in May 2017”.

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What’s up in indexes

BET (of Bucharest) decreased from 8,412.25 index points Monday, June 19th to 8,376.50 index points Tuesday, June 20th. It’s down 0.42 per cent d/d and up 28.81 per cent y/y.

BUX (of Budapest) increased from 35,948.41 index points Monday, June 19th to 35,989.69 index points Tuesday, June 20th. It’s up 0.11 per cent d/d and up 35.49 per cent y/y.

CROBEX (of Zagreb) decreased from 1,857.90 index points Monday, June 19th to 1,856.03 index points Tuesday, June 20th. It’s down 0.10 per cent d/d and up 13.39 per cent y/y.

OMXR (of Riga) decreased from 935.71 index points Monday, June 19th to 934.39 index points Tuesday, June 20th. It’s down 0.14 per cent d/d and up 47.30 per cent y/y.

OMXT (of Tallinn) increased from 1,129.44 index points Monday, June 19th to 1,132.01 index points Tuesday, June 20th. It’s up 0.23 per cent d/d and up 17.48 per cent y/y.

OMXV (of Vilnius) decreased from 593.73 index points Monday, June 19th to 590.73 index points Tuesday, June 20th. It’s down 0.51 per cent d/d and up 15.94 per cent y/y.

PX (of Prague) decreased from 1,004.03 index points Monday, June 19th to 998.21 index points Tuesday, June 20th. It’s down 0.58 per cent d/d and up 18.98 per cent y/y.

SAX (of Bratislava) closed at 309.20 index points Tuesday, June 20th. It’s the same result as Monday’s and Friday’s. It’s zero per cent change d/d and up 0.29 per cent y/y.

SOFIX (of Sofia) increased from 685.96 index points Monday, June 19th to 687.32 index points Tuesday, June 20th. It’s up 0.20 per cent d/d and up 50.00 per cent y/y.

UX (of Kyiv) decreased from 1,038.30 index points Monday, June 19th to 1,036.76 index points Tuesday, June 20th. It’s down 0.15 per cent d/d and up 54.72 per cent y/y.

WIG20 (of Warsaw) decreased from 2,334.27 index points Monday, June 19th to 2,302.83 index points Tuesday, June 20th. It’s down 1.35 per cent d/d and up 28.38 per cent y/y.

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