Daily monitor

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.

The Kyiv Cardboard Paper Mill [KIKP UZ, N/R] in Obukhiv (Kyiv Region) – a leading Ukrainian pulp and paper producer – has released a statement regarding its financial results for 2008. The company recorded a net profit of UAH 46.477 mln.

The electricity generating and distribution company Kyivenergo [KIEN UZ, U/R] failed to conduct a shareholders’ meeting yesterday. The key issues on the agenda of the failed AGM were the approval of KIEN’s 2007 financial results, distribution of 2007 net income, and changes to the company’s registrar.

At the end of 2008, the assets of Kyivmedpreparat [KMED UZ, BUY] was equal to UAH 859.248 mln, with long-term liabilities of UAH 179.847 and current liabilities of UAH 389.013 mln.

The International Grain Council (IGC) has increased its expectations related to the world harvest of grain and corn in the 2008/09 marketing year.

As reported by Ukrainian News, Prime Minister Yulia Tymoshenko directed several government bodies to prepare directives for allowing Ukrainian fertilizer producers to purchase natural gas directly from gas extraction companies.