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Economy and politics
June 14, 2010
Trade Balance Update
The Ukrainian trade balance in Jan-Apr 2010 amounted to – USD 1.88 bln, 5.8% better than in Jan-Apr 2009. Export increased by 28.1% - to USD14.56 bln, import by 23% to USD 16.44 bln.
Economy and politics
June 14, 2010
National Bank Increased Foreign Reserves by USD 2 bln
In 2010, National Bank of Ukraine has increased foreign reserves by USD 2 bln to USD 28.5 bln.
Economy and politics
June 10, 2010
Refinancing Rates also Cut
After cutting the interest rate from 10.25% to 9.5%, the National Bank of Ukraine (NBU) also cut refinancing rates to 10.5% on collateralized overnight loans and to 12.5% on blank overnight loans.
Economy and politics
June 9, 2010
Ukraine. Interest Rate Cut by 75 b.p. to 9.5%
The National Bank of Ukraine cut the interest rate by 75 b.p. to 9.5%, explaining it by improving economic situation that had existed at the beginning of the year. This measure was particularly adopted in the context of the GDP growth by 4.8% in Q1 and slowdown of inflation in May to 8.5% YOY.
Economy and politics
June 8, 2010
Deflation in Ukraine in May 2010 accelerated by 0.6%, PPI +4.4%
CPI in Ukraine declined by -0.6% in May after a rate of -0.3% in April (for the first time in the last 20 months). Since the beginning of 2010 inflation has amounted to 3.7% (8.5% yoy). In 2009 inflation slowed down to 12.3% from the rate of 22.3% in 2008.
Economy and politics
June 7, 2010
Major tendencies for 2011 budget policy approved
Verhovna Rada approved major tendencies for 2011 budget policy, which state that the budget deficit in 2011 will not exceed 4.5% of GDP. Public debt will tend to remain stable at less than 40% of GDP. Budgetary policy calls for taxation system reform, which implies a gradual decrease in the tax burden on taxpayers, a gradual increase in excise-duty rates, and the introduction of additional taxes on citizens with high incomes. Significant attention will be paid to increasing social standards.
Economy and politics
June 4, 2010
Reforms and Development Program published; the only thing left is to carry it out
The program of economic reforms for 2010–2014 has been approved, and calls for a number of reforms in various sectors of the Ukrainian economy. The main indicators of success will be: 1) decrease of the public account deficit by 1% annually to the level of 2% of GDP by 2013-2014; 2) stabilization of public debt at the level of 45% of GDP by 2014; 3) slowdown of inflation to 6%; and 4) reduction of the shadow economy by 30%. The program also implies a vast transformation and liquidation of governmental monopolies in the energy sector. Thus the reforms include plans to introduce a market pricing mechanism and carry out privatization in the coal and electricity sectors.
Economy and politics
May 27, 2010
Government intends to issue VAT bonds at UAH 20 bln

Ukrainian Prime Minister Azarov reported that his government intends to issue UAH 20 bln in VAT bonds in the coming months. Mr. Azarov said that the government intends to issue UAH 20 bln worth of these bonds per saltum bonds at 5.5% interest and a five-year period of circulation.

Economy and politics
May 20, 2010
SPF to privatize UTLM and 4 DistCos soon

State Property Fund of Ukraine announced privatization plans according to which 93% stake in Ukrtelecom [UTLM UK] shall be privatized in august 2010, 25% stakes in Odessaoblenergo [ODEN UK] and Poltavaoblenergo [POON UK] in may 2010 and 25% stakes in Sumyoblenergo and Prykarpattyaoblenergo [PREN UK] in June 2010. UTLM shall be privatised via open auction, whereas stakes in oblenergos via stock exchange.

Economy and politics
May 18, 2010
S&P upgrades Ukraine rating to В from В-

Standard & Poor's Ratings Services has raised the Ukraine’s foreign currency sovereign credit rating to 'B/B' from 'B-/C,' and raised the local currency ratings to 'B+/B' from 'B/B,' the agency said in a statement. The outlook is stable. At the same time, Ukraine's national scale rating improved to 'uaA+' from 'uaA.' The recovery rating of '4' on Ukraine's senior unsecured issues remains unchanged.

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