Ukraine’s sweet deal

Ukrainian Minister of Finance Natalie Jaresko (CC By ND US Embassy Kyiv Ukraine)

Ukraine received debt relief.

Romanian Post not to be privatised (again).

An agricultural aid of HUF 2.9 bln for Hungary.

Czech, Slovaks and Lithuanians are leaders in buying new cars.

International press praises the fresh deal on reducing Ukraine’s debt. After Finance Minister Natalie Jaresko negotiated terms of the agreement with private sector creditors, now the deal must be ratified by Ukraine’s parliament. The vote is scheduled this week.

What are the elements of the deal? Ukraine’s creditors would write off 20 per cent of the country’s foreign debt what amounts to £11.7bn. An American economist Lawrence Summers writes in Washington Post that the agreement: a) would eliminate principal payments for the next 4 years, 2) would reduce the principal value of the debt, c) would unlock the support from the IMF and other international institutions, d) would enable private capital to flow to the Ukraine soon.

The deal also establishes a “value recovery instrument” bonding debt repayment with economic growth but securing the growth fruits for Ukraine’s economy needs. >>Read more and more

Romania

The Romanian Posts, the company which profit was EUR 5m in 2014, was to be bought by the Belgian postal services operator bpost. Unfortunately bpost didn’t submit a binding offer for taking over a 51 per cent stake in the company by September 15, 2015. So the deadline expireed.

Romania’s Ministry for Informations Society still wants to sell the company. “The Post’s privatization hasn’t failed. The fact that the current privatization formula had no outcome doesn’t mean that the Post can’t search for a capitalization option that better fits the company’s current economic situation” – Romania Insider cites Alexandru Petrescu of Romanian Post.

>>Read more

Hungary

Hungary will receive a HUF 2.9bn agricultural emergency aid from the European Union. This is the decision of the EU farm ministers, that met in Luxembourg on Tuesday, September 16.

The total emergency aid for the European farmers who are the victims of falling prices in the milk sector, embargo against Russia and the summer drought, amounts to EUR 500m.

The information was passed by the Minister of Agriculture of Hungary – Sandor Fazekas.

>>Read more

Three-month bills were sold for HUF 55 bln

It is more than expected. The Hungary’s government debt management agency (ÁKK) sold HUF 55 bln of discount three-month T-bills at auction on Tuesday. It is HUB 10 bln more than AKK expected – Budapest Business Journal reports.

Average yield was 0.38 per cent, 5 bps under the secondary market benchmark and 18 bps lower than the yield at the previous auction of the bills one week earlier.

Let us remember that Hungary’s papers are getting more attractive as the economy prospects become better and the government introduces new laws – announces the cut on bank tax etc.

>>Read more

Czech, Slovakia, Lithuania

Europeans are buying more and more cars – Novinite of Bulgaria reports. It publishes numbers from the European Automobile Manufacturers Association report on new car registrations in August 2015. Sadly, Bulgaria registered a year-on-year decrease of 4,9 per cent. There were 1607 new registrations in August 2015, while in August 2014 there were 82 more new cars.

Infographics DG
Infographics DG

Also in Estonia car registration dropped a bit – by 1,9 per cent. The fastest growing car markets are Czech Republic with 18278 new registrations (up 31,1 per cent), Slovakia with 6785 new registrations (up 29,3 per cent) and Lithuania with 1208 new registrations (up 25,3 per cent). The market grew 17.8 per cent in August 2015 (with 23559 new registrations).

Demand for new passenger cars in the EU was up 11.2 per cent in August 2015 when compared to August 2014. The results were (respectively): 744706 and 669528 new car registrations. >>Read more and more

What’s up in indexes?

Only Warsaw, Prague, Vilnius and Bratislava found investors’ enthusiasm on Tuesday, September 15. Their indexed ended up respectively 0.013 per cent, 0.04 per cent, 0.03 per cent and 0.17 per cent. The other European indexes slid.

BUX index (of the Budapest Stock Exchange) was down 0.43 per cent on Tuesday, September 15. It was 21126.96 index points while on Monday, September 14 it was 21219.23. It is up 27.01 per cent from year-end.

BET (of Romania) was down 0.71  per cent with 7107.93 index points. On Monday it was 7158.82 index points. It is up 0.35 per cent from year-end.

PX (of Czech Republic) increased from 1000.9 index points on Monday to 1001.30 index points on Tuesday. So the result is +0.04 per cent. From year-end it’s up 5.77 per cent.

Polish WIG20 grows gently. It was up 0.13 per cent on Tuesday with 2185.88 index points compared to Monday’s 2183.95 index points. From year-end it dropped 5.62 per cent.

Bulgarian SOFIX ended down 0.57 per cent on Tuesday with 449.87 index points. The day before the result was 452.46 index points. And from year-end it is down 13.83 per cent.

OMX Tallinn also ended down. It lost  0.36  per cent with 880.37 index points. On Monday it was 883.58 index points. It is up 16.6 per cent from year-end.

OMXV (Vilnius) was again up. It increased from 485.91 index points on Monday to 486.07 on Tuesday (+0.03 per cent). And from year-end it is up 7.44 per cent.

SAX (of Bratislava Stock Exchange) still full of enthusiasm. It grew 0.17 per cent on Tuesday (from 265.82 to 266.27 index points). And it’s up 1309.77 per cent from the year-end.

Despite good news on Ukraine’s debt reduction, UX (Ukraine) fell by 1.65 per cent on Tuesday. It dropped by 6.32 per cent from year-end.

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