Daily monitor

As announced by EBRD President Tomas Mirow, the EBRD plans to provide EUR 500 mln towards the recapitalization of Ukrainian banks.

On February 16, Russian President Dmitry Medvedev and Bolivian President Evo Morales signed a new intergovernmental agreement on military cooperation.

The Unicredit Group intends to increase the statutory fund of Ukrsotsbank [USCB UZ, U/R] by UAH 0.5 bln to UAH 1.57 bln, according to USCB Chairman of the Board Borys Tymonkyn.

The UkrAVTO Corporation [AVTO UZ, N/R] – Ukraine's biggest car-maker and dealer, which is also known as the Ukrainian Automobile Association – finished 2008 with a net profit of UAH 521.265 mln.

Kernel [KER PW, BUY], a Ukrainian bulk oil and grain trader, released its financial results for 2Q08/09 last Friday. The company’s financial year ends in June.

The IMF is urging Ukraine to contract its budget deficit, conduct stricter monetary policy, and closely control its banking sector, as outlined in a report by the IMF’s External Relation Department’s Senior Advisor, David Hawley.

The Azovmash group increased sales in 2008 up to UAH 5.9 bln.

The electricity distribution company Hmelnytskoblenergo [HMON UZ, U/R] made UAH 29.5 mln (USD 5.6 mln) in net income in 2008, which is a 258% gain compared to the 2007 net income of UAH 8.2 mln (USD 1.6 mln).

Fitch has downgraded Ukraine’s long-term foreign and local currency issuer default ratings, as well as the Country Ceiling from ‘B+’ to ‘B’. The outlooks on both IDRs are negative. The short-term foreign currency outlook is affirmed at ‘B’.

Yesterday, the Minister of Finance Viktor Pynzenyk has submitted Parliament his resignation, justifying his decision in the inability to abandon the principles of a balanced budget with a minimum deficit, realistic revenue sources, and limits on government borrowings.