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Banking & Finance
ANOTHER MAJOR BANKING MERGER?A major increase in authorised capital by the Kyiv-based Finance & Credit Bank prompts speculation that the bank is preparing to be acquired by an international player Subscribe THE NEED FOR TRANSPARENCYEven as banks around the world enter the unchartered waters of financial turbulence linked to sub-prime credit woes in the US, Ukrainian banking continues to enjoy an upswing, albeit slower than last year Subscribe AMERICA’S SHAME: THE SUBPRIME CRASHThe implosion of the US subprime market and its global reverbations have revealed inexcusable complacency and what is in effect a giant pyramid scheme Subscribe FACING THE CREDIT STORM: WILL UKRAINE ESCAPE UNSCATHED?It is now clear that the credit squeeze that began in the US is not just a storm in a teacup, but fortunately the malaise is unlikely to have a drastic effect on Ukraine’s isolated markets Subscribe NO END IN SIGHT FOR THE UKRAINIAN BANKING BOOMThe Ukrainian banking sector is increasingly attracting international attention and posting record growth figures on the back of a real estate boom, bullish business sector and rising salaries, but are the numbers sustainable? Subscribe SMALL IS BEAUTIFUL: THE GROWTH OF THE ENTREPRENEURIAL CLASSAs they search for ways to diversify their limited portfolios, more and more Ukrainian banks are finding a recipe for success in supporting small- and medium-sized enterprises Subscribe UKRAINIAN EQUITIES AFTER THE ELECTIONSEveryone has their own views on politics, but money is money. So beyond the ideologies and policies at stake, what kind of impact might the coming elections have on Ukraine’s equities markets? Subscribe PREPARE FOR A RESTLESS SUMMERDespite local political troubles, Ukrainian stocks have been flying high, but the jury is out on whether they will be able to absorb the effects of a troubled US market More EBRD SELLS KREDOBANK STAKEThe sale of a 28% share of Kredobank to Poland’s PKO is yet another example of how the Ukrainian banking sector continues to be a market of prime interest for major players
Subscribe A SWEET DEAL ON THE PFTSIn an IPO that placed 20% of its shares on the PFTS last week, major Ukrainian sugar manufacturer UkrRos raised USD 42 million which it plans to invest in an ambitious expansion programme More GOING, GOING, GONEThe antiques market in Ukraine is full of pitfalls with plenty of counterfeit pieces in circulation, but it is by no means to be avoided - the cautious can do well if they follow a few simple guidelines
Subscribe DISCOVERING SECURITISATIONMany Ukrainian banks are now looking seriously at securitisation as a way of accessing cheaper sources of funding for real estate loans. With some small-scale success already evident, much more is sure to follow Subscribe VALUING TRANSACTIONS: HOW MUCH IS IT WORTH?M&A transactions involving non-traded stock have traditionally been benchmarked against exchange prices, but in Ukraine the small market size means this process is uncommon More SWEDBANK CONCLUDES TAS DEAL Swedbank expects high performance from its newly-acquired Ukrainian unit as the local banking sector continues rapid expansion MoreALMOST AS GOOD AS IT GETSNo stock market is ever an entirely safe bet, but Ukrainian PFTS has proven resilient against political instability and a general peaking of emerging market stocks worldwide Subscribe DUE DILIGENCE: MINIMISING RISK In a fast-moving market such as Ukraine’s where buyouts, takeovers and mergers are gathering pace, the need for careful due diligence processes has never been greater SubscribeENCOURAGINGLY SPEEDY GROWTHConcorde Capital’s head of research Konstantin Fisun says that the swift rise of the PFTS is due to a range of positive factors, such as increased foreign interest and moves towards global standards by more Ukrainian companies Subscribe EURO 2012: EUPHORIA OVER, WORK BEGINSAfter a brief period of mutual back-slapping over the successful bid for the Euro 2012 tournament, Ukraine’s leaders now face the critical questions: How - and how much? Subscribe GOING FURTHER AFIELD: XXI CENTURY GOES WEST Kyiv-based real estate investment firm XXI Century Investment has led the way in successfully raising capital through western institutions SubscribeTHE PFTS: TICKING THE RIGHT BOXESDespite a slow start by international standards, the PFTS is now well on the way to becoming a serious international player as Ukraine’s market capitalisation grows Subscribe UKRAINIAN INDEX FUNDS: ANOTHER STAR PERFORMEROn-line Capital’s two PFTS-linked funds have been enormously successful on the back of Ukraine’s high-performing stocks, so much so the company is considering a third Subscribe WHAT THE MARKET SAYSWe take a quick poll of Ukraine’s top investment and equity firms to find out the winners, losers, sectors to look for and their market predictions. Politics will be influencial, they say, but not critically so Subscribe UNICREDIT SNAPS UP UKRSOTSBANK In a landmark USD 2 billion deal, one of Ukraine’s biggest banks finally goes under the hammer following a series of failed negotiations MoreREVEALING THE REAL COST OF CREDIT A move by the National Bank of Ukraine forcing banks to reveal hidden charges in loan contracts may hurt their profits a little in the short term, but ultimately transparency will prove to be for the good of the sector SubscribeSPECIAL ECONOMIC ZONE CONTROVERSY WEARS ON Proposed new legislation governing Ukraine’s special economic zones has its supporters and detractors - but few would argue that something must be done SubscribeINSURANCE MARKET SET TO TAKE OFFDespite foreign companies’ willingness to enter the Ukrainian insurance market, the sector remains small. However, insiders are now seeing signs of serious growth Subscribe TIME FOR NEW REGULATIONS? Low entry requirements mean that too many small banks remain in Ukraine, blocking the consolidation the industry needs SubscribeConsumers in the spotlightThe results of the Consumer Confidence Index in Ukraine consistently demonstrate a strong connection to the volatile political situation
More Interview: Yuriy Lakhno The CEO of the Generali-Garant insurance company on the recent tie-up with Italy’s Generali and the growth of Ukraine’s immature but burgeoning insurance market
SubscribeStarting a critical relationship Having the right law firm on your side in Ukraine can be one of the most useful tools in a company’s armoury, so taking care in your choice of legal representation is a must
SubscribeAN INDUSTRY-DRIVEN BANKING BOOMDonetsk region is already reponsible for 10% of Ukraine’s personal banking business, but this figure is set to grow as salaries rise on the back of strong industrial growth Subscribe SECURING LONG-TERM FUNDINGA legal guide to Eurobond placements, international financing and securitisation in Ukraine More THE LIQUIDITY SQUEEZE Despite all the hype about unparalleled growth, most Ukrainian banks are stuck for options when it comes to a critical resource - liquidity MoreCREDIT BUREAUX: ASSESSING THE RISKThe recent emergence of credit bureaux in Ukraine as a way for banks to assess clients’ creditworthiness is a welcome development Subscribe INTERVIEW: LYUDMILLA RASPUTNA The CEO of Kreditprombank gives perspectives on the future of corporate & retail banking in Ukraine, the importance of international capital and views on the sector’s future SubscribeINTERVIEW: VOLODYMYR LAVRENCHUK Raiffeisen Bank Aval’s chairman on post-merger strategies, the retail business and risk management SubscribeRETAIL BANKING: RIDING THE WAVE With its explosive growth rates, retail banking is unquestionably the prime driver of the sector in Ukraine - but the party won’t last forever SubscribeTHE BANKING M&A MARKET: BETTING ON A BRIGHT FUTURE Ukraine’s banking sector boom has seen international players move in to get a slice of the country’s economic boom. But there is only a limited number of buyers and ROE is limited, so high asset prices won’t last SubscribeUKRAINE’S FOREX CHALLENGE As the days of the hryvnia’s peg to the dollar look numbered, banks need to start looking more closely at foreign currency risk SubscribeInvestors putting politics asideThe stock market has been staunchly confident throughout the political crisis More No need for a chrystal ballThe long-held suspicions that the markets are learning to ignore the political bickering are being confirmed by Ukraine’s high economic and market performance despite the ongoing War of the Viktors Subscribe UKRAINE AND THE WEAK DOLLAR With the hryvnia effectively pegged to the US dollar which is still weakening against the euro, Ukraine could potentially benefit on the export front but trade barriers leave this in the realms of theory SubscribeA FLURRY OF M&A DEALS, BUT VOLUMES STILL SMALL Mergers, takeovers and privatisation deals have all increased in numbers in recent times, but lack of transparency is still acting as a brake on greater activity SubscribeM&A: WHAT THE LAW SAYSA guide to the regulations, conventions and practices of conducting Mergers & Acquisitions in Ukraine Subscribe THE SEARCH FOR STABLE FUNDING As the growth of credit continues unabated in Ukraine, banks now face the need to secure stable and economic sources of funding SubscribeDIVERGING VALUE PERCEPTIONSThe failure of the Ukrsotsbank-Banca Intesa deal is perhaps a sign of foreign investors re-evaluating the high premiums recently paid for prime Ukrainian business assets Subscribe MORTGAGES ON THE RISE The real estate construction frenzy and lower interest rates mean that the mortgage sector in Ukraine is booming. But will interest rates drop to the point where it can truly become a mass market? SubscribeA LOOK INSIDE THE RETAIL CREDIT BOOM Ukraine’s retail credit market is growing at a phenomenal rate and despite emerging market risks, it is unlikely to slow down any time soon SubscribeTHE FORCE OF CONVERGENCEAs one of the last countries to join the world of capitalist market forces, Ukraine has the opportunity to fast-track itself to economic parity with its neighbours. But the politicians will have to learn to play the game too Subscribe EMBRACING RISK While Ukraine still exhibits post-Soviet suspicion of insurance as a necessary function, attitudes are changing and the market is growing with the help of foreign players SubscribeUKRSOTSBANK SALE ON THE ROCKS As the sale of Ukraine’s number four bank to Italy’s Banca Intesa SanPaolo slips past deadline, the industry considers rising values as a major factor SubscribeBONDS: STABILITY VERSUS RISKThe bond market in Ukraine has been in full swing since the early years of the decade. There is money to be made, but it’s not for the faint-hearted or the small-timer More DEVELOPMENTS IN LONG-TERM FORECASTINGHow a Canadian-funded project is helping Ukraine’s government develop the tools it needs for more effective long-range economic forecasting and analysis Subscribe QUO VADIS, UKRAINE? Ukraine’s banking system is set to change dramatically, but it could go in either the direction of Russia’s banks or Central Europe’s. Here’s why SubscribeMORE EU CASH BUT NO END IN SIGHTEU entry is still a distant goal for Ukraine but the prospect of eventual membership is being kept alive, albeit with caveats, by the country’s political leaders Subscribe WHY BANKS NEED BALANCED GROWTH Greater utilisation of available international credit for energy efficiency and SME finance could have positive consequences for the economy and become an even healthier product line for banks SubscribeSHANGHAI BLUES The recent sputtering of the Shanghai bourse demonstrated that in some ways, less developed markets like Ukraine’s can turn out to be a safer bet SubscribeECONOMY: THE WEEK IN REVIEWThere was much comment last week on the expected increase in the minimum wage and pensions. More THE SWEDISH CONNECTION TAS-Kommerzbank buys for USD 735 million, analysts say premium paid by Swedbank to gain foothold in emerging Ukrainian market Subscribe | |