Page 7 - bne_March2019_20190306 magazine

bne March 2019 The Month That Was I 7
Finance
Eastern Europe
Russia’s retail banking powerhouse Sberbank increased the authorized capital of its Ukrainian subsidiary bank by UAH3.3bn ($122mn), or
by 15.9%, to UAH24.065bn, the bank said on February 12. As a result of the increase in the authorized capital, the bank has formed additional reserves for loans, as well as increased capital adequacy, the bank said.
Ukraine's largest agricultural compa- ny Ukrlandfarming and its subsidiary Avangardco have inked a restruc- turing agreement for a UAH4.4bn ($162mn) debt owed to state-owned lender Oschadbank. At the same time, sides did not reveal parameters of the debt restructuring.
Ukraine’s Cabinet of Ministers approved on February 13 the key parameters of a new Eurobond issue by Ukrzaliznytsia (Ukrainian Railway) the Ukrainian News agency reported the same day. Ukrzaliznytsia tried to get a $500mn Eurobond away last November in the same week that the government issued a $3bn, but it failed.
The Ukrainian banking sector reported UAH21.7bn (around $80mn) of net profit in 2018 following a net loss of UAH26.5bn a year ago, the National Bank of Ukraine (NBU) said in a statement published on February 7. The country's banking system has returned to profit- ability for the first time since 2013.
Ukraine plans to issue sovereign
debt with World Bank guarantees by the end of February, Finance Minister Oksana Markarova told reporters after
a conference. Ukraine expects a €500mn loan tranche from the European Union by the end of March, she said, adding that the government is also in talks about bilateral loans with various coun- tries. She declined to name them but they include nations from the Group
of Seven (G7).
Central Europe
Trading on Poland’s Warsaw Stock Exchange main equities market totalled PLN20.3bn (€4.74bn) in Janu- ary, growing 4.6% y/y. At the end of January, the bourse’s main WIG index stood at 60,367.42 points, equivalent to a fall of 8.6% y/y.
The EBRD launched its first technical assistance fintech project in Estonia alongside the country’s finance minis- try and Financial Services Authority. One option is to build Estonia’s first regulatory sandbox, the EBRD said, outlining benefits such as facilitating innovation and enable firms to test innovative financial products, financial services or business models.
The Estonian financial market regula- tor Finantsinspektsioon ordered the closure of Danish lender Danske Bank’s local branch, months after the branch was revealed to have funnelled billions of euros in a massive breach of national and EU anti-money-laundering regulations.
Southeast Europe
Romania is preparing to launch a new Eurobond once January budget execution figures are published, Darius Valcov, an advisor to prime minister Viorica Dancila, announced. The Euro- bond announcement comes amid a dispute between the government and local banks, with the former claiming excessive yields asked for in the issues launched on the local market.
The European Energy Exchange (EEX) expects to expand power trading
to Bulgaria, Serbia and Slovenia this year, Reuters reported quoting chief executive Peter Reitz. Reitz said that the EEX will cover 20 power trading zones in Europe after adding the three countries.
Debt-pressured Turkish conglomer- ates Yildiz and Dogus are seeking more asset sales. Yildiz Holding plans to
complete the sale of Godiva Chocolate’s Japanese business at the end of Febru- ary, an executive told Bloomberg, while Dogus Holding is in talks with TUI to sell its D-Resort Grand Azur Otel in Marmaris town located in Aegean coast of Turkey.
The EBRD will lend Bosnia €201mn
for the construction of 14 km of the pan- European Corridor Vc motorway. Cor- ridor Vc runs from the Hungarian capital Budapest through Croatia and Bosnia and ends again in Croatia, at the Adriatic town and major seaport of Ploce.
Eurasia
The EBRD arranged a $12mn local currency loan for Mongolian daily producer Suu Milk to expand its facili- ties. “The loan will help Suu Milk improve raw milk collection logistics from over 2,500 nomad herders, half of which are women,” and EBRD statement added.
The European Investment Bank (EIB) and the Georgian government signed
a deal on a €250mn loan to finance infrastructure projects in Georgia. The money will be used for “vitally important” infrastructure projects, said the government of Georgia, such as the construction and renovation of the Rustavi-Red Bridge-Sadakhlo highway.
The EBRD launched a new Green Economy Financing Facility (GEFF) for Armenia, co-financed by the Green Climate Fund. ArmSwiss Bank, which
is the second bank in Armenia to join the GEFF scheme, will receive a €2.5mn loan for lending to SMEs and corporates.
www.bne.eu