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Archive for December 24th, 2008

Tymoshenko: NBU continues rate of exchange speculations

Posted by the Editor on December 24, 2008


News / 24 December 2008 | 17:30

NBU continues rate of exchange speculations

Tymoshenko: NBU continues rate of exchange speculations

The National Bank under the President’s cover continues hryvnia rate/dollar speculations. Prime Minister of Ukraine Yulia Tymoshenko told a briefing today, government portal reported.

Yulia Tymoshenko noted that NBU commits such cynical actions despite the promulgated by her schemes of hryvnia collapse last week. The Prime Minister stated that steps of the President and his circle lead to collapse in all sectors of the Ukrainian economy and informed about new facts about the exchange violations introduced into life under the President’s cover.

As Yulia Tymoshenko noted after her intervention in the situation hryvnia rate became stabilize but the NBU in its turn spared no effort to prevent the hryvnia’s strengthening. As a matter of fact, since Friday, after my press conference, last week the NBU started to work at restraining the hryvnia rate drop…This happens today because the President along with his Secretariat and NBU head proceed with machination,” Yulia Tymoshenko said.

At the same time the Prime Minister informed that President and his team had involved in these speculations the whole network of commercial banks behind which Dmytro Firtash is – these are Rodovid bank, Alfa-bank, Ukrgazbank, Clearing house bank, Eurogazbank and Misto. On the whole above UAH 4bn of refinancing was allocated for these banks on the grounds of the Secretariat of the President and Mr. Firtash’s speculations,” the PM stated, adding that in tote the NBU had granted these banks with above UAH 11bn among UAH 40bn allocated for refinancing. “This is the highest cynicism in respect of Ukraine,” Yulia Tymoshenko stated.

“I want you to understand what speculations by only one person and the President’s team were aimed at hryvnia collapse and making money,” the Head of Government stressed.

Moreover, Yulia Tymosehnko told that first deputy head of NBU Anatolii Shapovalov on Monday, December 22 tried at the NBU sitting to press for allocating for Nadra bank another UAH 2.5bn as refinancing. “The board of directors members opposed against such proposal,” the Prime Minister informed.

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Expert: Ukraine needs too much gas

Posted by the Editor on December 24, 2008


News / 24 December 2008 | 16:43

Expert: Ukraine needs too much gas

Energy efficiency of the Ukrainian economy is 5-7 times lower than energy efficiency of economy of western countries.

Vice Director of the Institute of Global Economy and International Relations of the Academy of Sciences of Ukraine Valeriy Novytskyi told at the press-conference.

According to him, neither objective gas price nor energy careers price exists due to subjective factor.

“Energy efficiency of the economy of Ukraine is more important than gas price”, Novytskyi noted.

He noted that the Gazprom is a monopolist on the European market. “If Ukraine was a monopolist, it would behave just like Russia”, the expert added.

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Kharkiv mayor is asked to demolish monument to OUN-UPA

Posted by the Editor on December 24, 2008


News / 24 December 2008 | 16:01

Kharkiv mayor is asked to demolish monument to OUN-UPA

On the initiative of Vitrenko’s bloc the Kharkiv regional council addressed mayor Mykhailo Dobkin with a request to demolish a monument to OUN-UPA, erected in a park without permission.

According to the leader of the Russian bloc Gennady Makarov, the council already addressed the parliament, president and Cabinet on December 15 to prevent rehabilitation of Nazi organizations, like OUN-UPA.

He also reminded that on April 16 the Kharkiv council refused the appeal on erection of a monument to OUN-UPA warriors. Nevertheless, Makarov said, the monument has been erected.

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Putin praised Medvedchuk

Posted by the Editor on December 24, 2008


News / 24 December 2008 | 15:10

Putin praised Medvedchuk

Ukrainian newspaper “Glavred” addressed the leading politicians of the world with a request to write about Ukrainian officials, who have influence on the development of Ukraine.

Russian premier Vladimir Putin named ex-chief of staff under president Kuchma.

“Viktor Medvedchuk is a competent and reliable person, who stands for interests of his country and for the development of Russian-Ukrainian relations,” Putin said.

Putin also praised the position of Medvedchuk regarding the neutral status of Ukraine.

As a reminder, Viktor Medvedchuk has been avoiding press attention recently, though they say he still has influence on the situation.

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Yushchenko guarantees stable transit of gas to Europe

Posted by the Editor on December 24, 2008


News / 24 December 2008 | 14:20

Yushchenko guarantees stable transit of gas to Europe

President of Ukraine Viktor Yushchenko, on behalf of the state, vows to provide an uninterrupted transit of all energy carriers to Europe, the head of state claimed at a meeting with G7 Ambassadors and the Head of Delegation of the European Commission to Ukraine.

“In the near future an agreement between the Naftogaz of Ukraine Co. and the gazprom Holding will be signed”, Viktor Yushchenko said.

He informed that the Ukrainian side provides regular payments for the current gas supplies and added that “it is necessary to find a compromise”.

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What are you ready to do to pay off credit?

Posted by the Editor on December 24, 2008


Analytics / 24 December 2008 | 14:06

What are you ready to do to pay off credit?

What are you ready to do to pay off credit?

Because of the impossibility to pay off credits Ukrainians are taking desperate steps…

Mass Medias started to inform that because of the impossibility to pay off the loans people are taking desperate steps, including robbery and suicides.

How will the situation develop? Will the banks meet debtors half way? Or will they continue to withdraw mortgage property and securities…

Head of the Main Service of social and economical development of the Secretariat of the President Roman Zhukovskyi:

– We spoke to representatives of the biggest banks. They told us that under condition of the rate of UAH 7.5 per $1 there will be about 25% of non-payments for credits. As for today, about 20% of loans are overdue.

The situation will worsen with every rise of foreign exchange rate.

As for today, the debt for credits may make about 60%. Banks should do anything. The Secretariat of the President together with the Ministry for Finance proposed to share exchange risks between clients and banks.

If suggestions of the Secretariat of the President were taken negatively in the very beginning, then later they were met in quite reserved way. Banks have understood that the situation should be improved by common efforts

Oleksandr Zholud, economist of the International research center:

– The number of overdue credits will increase in any case, and banks will get more mortgage property. Consequently, the banks will have to sell this property to return their money. But under the conditions of the crisis, when the property prices keep dropping, it is not very profitable for banks to sell securities.

If a sold property brought more money than a debtor owes, the difference will be returned to the debtor. But in the most cases banks take back more money than the real amount of a loan. It means that banks take a fine for refusal to continue cooperation and for canceling the contract.

It turns out that people will lose their property, deposit and paid percentage.

Kateryna Skritskaya, director of debt collector service:

– Almost 70% of debtors have no possibility to pay off their loans, and collector services have a lot of work to do.

The system works as follows:

First, banks call debtors and remind about the pay-off. If it does not help, banks send collectors who inform people about their debts and deliver corresponding documents.

If it still does not help, collectors appeal to court to take money or securities.

Unfortunately, people’s incomes have decreased, and it is very difficult to sell out mortgages or securities, a car for example.

It is not profitable for banks to confiscate mortgage property or securities. It is necessary to work out a scheme, which would ease the pay-off procedure for debtors. It is more advantageous for banks to meet debtors half way.

Ksenia Lyapina, Our Ukraine deputy, economist:

– It is not profitable for banks to confiscate mortgage property or securities, as they cannot sell them out. On the other hand, we cannot forbid the banks to withdraw securities for non-payment, as the loan means were taken from people’s deposits. In other words, we will punish those who deposit their money in the banks.

The only way out is to balance the situation – to give a possibility to prolong credits and give a financial support for the crisis period. When the situation stabilizes and people get normal salaries, the question on pay-offs can be raised again.

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Tymoshenko: National Bank has one or one and a half week to stabilize the rate of exchange in Ukraine

Posted by the Editor on December 24, 2008


News / 24 December 2008 | 13:30

National Bank has one or one and a half week to stabilize the rate of exchange in Ukraine

Tymoshenko: National Bank has one or one and a half week to stabilize the rate of exchange in Ukraine

(Government portal) The National Bank of Ukraine has to stabilize the hryvnia rate against dollar in a short space of time, to prevent increase in inflation, aggravation of problems in the banking sector and the economy on the whole. Prime Minister of Ukraine Yulia Tymoshenko stated, presenting in the Verkhovna Rada the draft State Budget for 2009 and the Government’s Action Program.

“If the NBU, within the nearest days or, probably, we have only one or one and a half week at most, fails to stabilize the currency at economically and financially objective level – 6-6.5 hryvnias per dollar, we’ll have serious inflation problems and problems in the banking sector and in every enterprise and in every family,” Yulia Tymoshenko stated.

At that the Head of Government noted that conclusions of the special investigative commission in the Verkhovna Rada on examination of the rate of exchange situation of Ukraine and NBU activity are extremely important for resolving this issue, “I hope very much that conclusions of the special investigative commission will be considered soon and we can get answers to the question – NBU professional leadership”.

According to the Prime Minister, the financial crisis essentially aggravates the national currencies devaluation against the USD dollar practically in all countries of the world but in Ukraine it is critical. “Even those countries which approached default, have less recession in the national currency value than Ukraine faces,” Yulia Tymoshenko said.  

The Head of Government noted that NBU policy is not directed at the creation of conditions allowing to repay credits both for economical objects and citizens of Ukraine.

“This is a challenge that has emerged in Ukraine, has to be met and all will pay for it,” Yulia Tymoshenko noted.


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Tymoshenko cancelled Cabinets session because of the budget

Posted by the Editor on December 24, 2008


News / 24 December 2008 | 12:42

Tymoshenko cancelled Cabinets session because of the budget

The Cabinet of Ministers has postponed the session, press secretary of the premier Maryna Soroka informed.

“Due to the budget process the session has been postponed,” she said.

She noted that on Tuesday Tymoshenko presented the governmental draft bill on state budget for 2009 in the parliament and on Wednesday deputies are working in committees.

The press secretary reminded that December 15-19 the Cabinet held sessions three times. Press office of the Cabinet will inform on a new date of a meeting later.

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